Table 3-5 -Refer to Table 3-5.If Japan and the United States Trade

Multiple Choice

Table 3-5

-Refer to Table 3-5.If Japan and the United States trade based on the principle of comparative advantage,

A) both countries can consume outside of their respective production possibilities frontiers.
B) both countries can have more airplanes and cars than they would have without trade.
C) Japan will specialize in cars and the United States will specialize in airplanes.
D) All of the above are correct.