If Japan Does Not Have a Comparative Advantage in Producing

question 23

Multiple Choice

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:

• A) Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve.
• B) the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.
• C) the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall.
• D) the price of rice in Japan will fall.

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Definitions:

Required Rate Of Return

The minimum percentage return that an investor expects to receive from an investment.

Contribution Margin Ratio

Contribution Margin Ratio is a company's contribution margin expressed as a percentage of its total sales, indicating the portion of sales revenue that is not consumed by variable costs.

Throughput Time

The total time taken for a product to be completed from start to finish, including processing, waiting, and transport times.

Turnover

A measure of how quickly assets, such as inventory or investments, are converted into sales or revenue within a given period.