Assume That China Has a Comparative Advantage in Producing Corn

question 236

Multiple Choice

Assume that China has a comparative advantage in producing corn and exports corn to Japan. We can conclude that

• A) China also has an absolute advantage in producing corn relative to Japan.
• B) China has a lower opportunity cost of producing corn relative to Japan.
• C) Japan has an absolute disadvantage in producing corn relative to China.
• D) Labor costs are higher for corn producers in Japan than in China.

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Definitions:

Social Factors

Encompass the external societal influences on an individual's behavior, beliefs, and life outcomes, such as family, culture, and socio-economic status.

Individual Psychology

A therapeutic approach founded by Alfred Adler, focusing on the uniqueness of the individual and the importance of societal factors in personality development.

Adler

Alfred Adler, an Austrian medical doctor, psychotherapist, and founder of the school of individual psychology.

Compensation

A strategy where individuals try to offset deficiencies or weaknesses by emphasizing strengths or excelling in other areas.