Suppose the U. S. and Japan both produce airplanes and televisions and the U. S. has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions. If the U. S. exports airplanes to Japan and imports televisions from Japan,
a. all individuals in both countries will be better off.
b. all individuals in both countries will be worse off.
c. both countries, as a whole, will be worse off.
d. both countries, as whole, will be better off.
Answers: 2
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Suppose the U. S. and Japan both produce airplanes and televisions and the U. S. has a comparative a...
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