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.