The United States' Comparative Advantage Over Japan in the Production

question 45

Multiple Choice

The United States' comparative advantage over Japan in the production of rock-n-roll music implies that (for a similar quality of music) the

• A)opportunity cost of production is less in Japan.
• B)absolute cost of production is less in the United States.
• C)absolute cost of production is less in Japan.
• D)opportunity cost of production is less in the United States.

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Definitions:

Subrogation

The right of the insurer upon payment to take over the rights of the insured in relation to whoever caused the injury.

Guarantor

A person assuming obligation to pay if the debtor does not.

Real Property

Land, buildings attached to the land, and items called fixtures, that is, items that are attached to the land or to a building or to another fixture attached to the land.

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).