If Japan Gives Up 10 Bushels of Rice to Produce

question 83

Multiple Choice

If Japan gives up 10 bushels of rice to produce 1 bicycle,while Australia gives up 5 bushels of rice to produce 1 bicycle,then:

• A)the opportunity cost of producing bicycles in Australia is higher than in Japan.
• B)Japan has a comparative advantage in the production of bicycles.
• C)Australia has an absolute advantage in the production of rice.
• D)total output will be highest if Australia specialises in rice and Japan specialises in bicycles.
• E)total output will be highest if Japan specialises in rice and Australia specialises in bicycles.

---

Definitions:

Labor Market

Refers to the supply and demand for labor, where employees provide the supply and employers the demand.

High-Speed Blenders

Advanced blending machines designed to operate at very high speeds, providing efficient and thorough mixing of ingredients.

Marginal Productivities

The additional output derived from the addition of one more unit of a factor of production, keeping all other inputs constant.

Electronic Pulse

A burst of electromagnetic energy produced by a sudden electrical charge, often associated with electromagnetic weapons or natural phenomena like lightning.