Suppose the U

question 18

Multiple Choice

Suppose the U.S.and Japan can both produce airplanes and televisions and the U.S.has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions.Also suppose the U.S.has an absolute advantage in the production of both airplanes and televisions.The U.S.should

• A)not trade airplanes or televisions with Japan.
• B)import airplanes from Japan and export televisions to Japan.
• C)export airplanes to Japan and import televisions from Japan.
• D)export both airplanes and televisions to Japan.

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Definitions:

Domestic Business Markets

Markets within a country's borders where goods and services are bought and sold.

Skills Shortage

A situation where the demand for specific skills exceeds the supply of individuals who have those skills within the labor market.

Domestic Workforce

Employees who work within their own country, often distinguished from an international or global workforce.

New Economy

Refers to the shift from traditional manufacturing and industry-based economies to an economy focused on technology, digital services, and information.