Solved

Table 3-3 -Refer to Table 3-3

Question 8

Multiple Choice

Table 3-3
 Hours needed to make one unit of:  Amount produced in 2400 hours:  Cars  Aeroplanes  Cars  Aeroplanes  US 401606015 Europe 501504816\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}
-Refer to Table 3-3.If the US and Europe trade according to the principle of comparative advantage, Europe will export what product to the US?


A) cars
B) both aeroplanes and cars
C) aeroplanes
D) Europe should buy both products from the US

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions