Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-26. Japan and Korea would not be able to gain from trade if Korea's opportunity cost of one car changed to
A)1/5 airplane.
B)1/3 airplane.
C)3 airplanes.
D)5 airplanes.

Question

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
​ 
-Refer to Table 3-26. Japan and Korea would not be able to gain from trade if Korea's opportunity cost of one car changed to
A)1/5 airplane. 
B)1/3 airplane. 
C)3 airplanes. 
D)5 airplanes.

Quizplus · Accepted Answer

The Answer of Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
​ 
-Refer to Table 3-26. Japan and Korea would not be able to gain from trade if Korea's opportunity cost of one car changed to
A)1/5 airplane. 
B)1/3 airplane. 
C)3 airplanes. 
D)5 airplanes.

Table 3-26 Assume That Japan and Korea Can Switch Between Producing Cars