If Japan Does NOT Have a Comparative Advantage in Producing

question 127

Multiple Choice

If Japan does NOT have a comparative advantage in producing rice,what would be a consequence of Japan adopting a policy of reducing or eliminating imports of rice?

• A)The price of rice in Japan will fall.
• B)Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve.
• C)The real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall.
• D)The real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.

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