Ireland and Japan Are Assumed to Produce Only Wool and Steel,to

Multiple Choice

Ireland and Japan are assumed to produce only wool and steel,to have full employment and complete mobility of resources between industries.Their production possibilities boundaries before trade are drawn in solid lines.It is assumed that the two countries have the same amount of resources.Their consumption possibilities after trade are shown by the dotted lines.The outputs of wool and steel are given in physical units. FIGURE 32-1 Refer to Figure 32-1.When trade between Ireland and Japan begins,the probable trade pattern is to

A) export wool from Ireland to Japan and steel from Japan to Ireland.
B) export wool from Japan to Ireland and steel from Ireland to Japan.
C) export both wool and steel from Ireland to Japan.
D) export both wool and steel from Japan to Ireland.
E) impose tariffs on both goods in both countries.