Multiple Choice
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. Korea has an absolute advantage in the production of
A) cars and a comparative advantage in the production of cars.
B) cars and a comparative advantage in the production of airplanes.
C) neither good and a comparative advantage in the production of cars.
D) neither good and a comparative advantage in the production of airplanes.
Correct Answer:

Verified
Correct Answer:
Verified
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