If United States has a comparative advantage over Japan in the production of cars, then. O the opportunity cost of producing cars in United States is lower than in Japan. O the opportunity cost of producing cars in United States is higher than in Japan. O only United States will gain from specialization and trade in cars between United States and Japan. O there are no gains from specialization and trade in cars between United States and Japan.
If United States has a comparative advantage over Japan in the production of cars, then. O the opportunity cost of producing cars in United States is lower than in Japan. O the opportunity cost of producing cars in United States is higher than in Japan. O only United States will gain from specialization and trade in cars between United States and Japan. O there are no gains from specialization and trade in cars between United States and Japan.
Chapter17: International Trade
Section: Chapter Questions
Problem 1.2P
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Transcribed Image Text:If United States has a comparative advantage over Japan in the production of cars, then.
O the opportunity cost of producing cars in United States is lower than in Japan.
the opportunity cost of producing cars in United States is higher than in Japan.
O only United States will gain from specialization and trade in cars between United States and Japan.
O there are no gains from specialization and trade in cars between United States and Japan.
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