If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then
a. the opportunity cost of producing bicycles in the United States is higher than in Japan
b. Japan has a comparative advantage in the production of bicycles
c. the United States has an absolute advantage in the production of rice
d. total output will be greater if the United States specializes in rice and Japan specializes in bicycles
e. total output will be greater if Japan specializes in rice and the United States specializes in bicycles
E
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In the above figure, the intersection of curves A and C is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
A price floor that sets the price of a good above market equilibrium will cause:
a. a decrease in quantity demanded of the good. b. an increase in quantity supplied of the good. c. a surplus of the good. d. all of these.