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

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-26. Without trade, Japan produced and consumed 50 cars and 6 airplanes and Korea produced and consumed 27 cars and 7 airplanes. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 28 cars for 8 airplanes. As a result, Japan gained

A) 0 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
B) 2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
C) 28 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.
D) 52 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.