Table 2.2.Output possibilities for South Korea and Japan

-Refer to Table 2.2.According to the principle of comparative advantage:
A) South Korea should export steel
B) South Korea should export steel and VCRs
C) Japan should export steel
D) Japan should export steel and VCRs

Question

Table 2.2.Output possibilities for South Korea and Japan
 
-Refer to Table 2.2.According to the principle of comparative advantage:
A) South Korea should export steel 
B) South Korea should export steel and VCRs 
C) Japan should export steel 
D) Japan should export steel and VCRs

Quizplus · Accepted Answer

South Korea should export steel if it has a comparative advantage in steel production, meaning it can produce steel at a lower opportunity cost than Japan.

Table 2.2.Output Possibilities for South Korea and Japan