Table 3-5

-Refer to Table 3-5.If the United States and Japan trade based on the principle of comparative advantage,Japan will
A)export cars (but not airplanes) to the U.S.
B)export airplanes (but not cars) to the U.S.
C)export cars and airplanes to the U.S.
D)import cars and airplanes from the U.S.

Question

Table 3-5
 
-Refer to Table 3-5.If the United States and Japan trade based on the principle of comparative advantage,Japan will
A)export cars (but not airplanes) to the U.S. 
B)export airplanes (but not cars) to the U.S. 
C)export cars and airplanes to the U.S. 
D)import cars and airplanes from the U.S.

Quizplus · Accepted Answer

Japan will export cars to the U.S. if it has a comparative advantage in producing cars compared to airplanes.

Table 3-5 -Refer to Table 3-5.If the United States and Japan Trade