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:

Aggregate

A whole formed by combining several elements, often used in context with data or materials.

Spreadsheets

Digital documents consisting of rows and columns used for organizing, calculating, and storing data.

Database Software

Computer programs that allow storage, modification, and extraction of information from a database.

SCIS

Supply Chain Information Systems; technology and software tools designed to enhance visibility, efficiency, and management of the supply chain from procurement to delivery.