Assume Japan Must Forego Producing 60 Computers for Each Automobile

question 97

Multiple Choice

Assume Japan must forego producing 60 computers for each automobile it produces.Moreover,the United States can produce one automobile if it forgoes producing 80 computers.Which of the following is true?

• A)The United States has a lower opportunity cost of producing automobiles.
• B)The United States has a comparative advantage in producing automobiles.
• C)Japan has a comparative advantage in producing computers.
• D)No trade will occur between Japan and the United States.
• E)Japan has a lower opportunity cost of producing automobiles.

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Definitions:

Continuous Improvement

A continuous endeavor to enhance products, services, or processes through both small and significant advancements.

TQM Tools

A set of methodologies and practices aimed at improving the quality of products and processes within an organization, part of Total Quality Management.

Line Employees

Workers directly involved in the production or delivery of products and services, as opposed to those in management or administrative roles.

Six Sigma

A set of techniques and tools for process improvement aimed at enhancing the quality and efficiency of operational processes.