Assume That China Has a Comparative Advantage in Producing Corn

question 236

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

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Definitions:

EMI

Electromagnetic Interference, disturbances that affect an electrical circuit due to electromagnetic induction or radiation emitted from an external source.

Line Voltage Variations

Fluctuations in the electrical power supply voltage that can affect the performance of electrical devices.