Japan Can Use All of Its Resources to Produce 100

question 406

Essay

Japan can use all of its resources to produce 100 videos or 400 shoes. China can use all of its resources to produce 25 videos or 200 shoes. Which nation has the comparative advantage in shoes and which nation has the comparative advantage in videos?

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Definitions:

Mortgage-Based Securities

Financial instruments that represent claims to the cash flows from pools of mortgage loans, typically on residential property.

Barack Obama

The 44th President of the United States from 2009 to 2017, and the first African American to hold the office, known for significant healthcare reform and a focus on progressive social policies.

Iraq War

Military campaign in 2003 in which the United States, unable to gain approval by the United Nations, unilaterally occupied Iraq and removed dictator Saddam Hussein from power.

Affirmative Action

Policy efforts to promote greater employment opportunities for minorities.