Assume That China Has a Comparative Advantage in Producing Corn

question 124

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)labour costs are higher for corn producers in Japan than in China.

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Definitions:

Origin Contract

A term referring to the initial agreement between parties, detailing the basis of their contractual relationship.

Title Pass

The transfer of ownership of a property or an asset from one party to another, usually occurring upon the fulfillment of agreed conditions.

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Contextual factors referring to when and where an event occurs, which can significantly affect the nature or interpretation of the event.

Buyer's Expense

Costs that are borne by the purchaser of goods or services, including but not limited to, shipping, taxes, and any other charges associated with the purchase.