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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