Table 3-3 -Refer to Table 3-3

Multiple Choice

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

A) all individuals in both countries will gain
B) both countries can have more aeroplanes and cars
C) Europe will specialise in cars and the US will specialise in aeroplanes
D) both countries will consume on their own production possibilities frontier