Japan Has Developed a Comparative Advantage in Designing and Producing

question 42

Multiple Choice

Japan has developed a comparative advantage in designing and producing automobiles.The source of its comparative advantage in these products is

• A)abundant supplies of natural resources.
• B)a favorable climate.
• C)a strong central government.
• D)technology.

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Definitions:

Government Fund

A financial allocation from the government aimed at supporting specific projects, sectors, or initiatives, often involving public resources.

Cafeteria-Style Benefits Plans

Allow employees to choose those benefits they really want.

Adverse Selection

A situation in economics and insurance where a party’s lack of information leads to a transaction with another party who has a distinct advantage, often seen in markets for goods like used cars or in health insurance.

Benefit Costs

The expenses incurred by an organization in providing benefits such as health insurance, retirement plans, and leave entitlements to its employees.