The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true thatGroup of answer choicesthe opportunity cost of producing televisions in Japan is higher than that in the United States.the opportunity cost of producing computer chips in the United States is higher than that in Japan.the United States has comparative advantage in producing computer chips.the United States has comparative advantage in producing televisions.

. Trade theory suggests that Japan would gain from a subsidy the United States provides itsgrain farmers if the gains to Japanese consumers of wheat products more than offsets the lossesto Japanese wheat farmers. This would occur as long as JapanA) is a net importer in bilateral trade flows with the United States.B) is a net importer of wheat.C) has a comparative advantage in wheat.D) has an absolute advantage in producing wheat.E) is involved in intra-industry trade with the United States.

Assume that labor is the only factor of production and that wages in the United States equal$20 per hour while wages in Japan are $10 per hour. Production costs would be lower in theUnited States as compared to Japan ifA) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.B) U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour.C) U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour.D) U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour.E) U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.

Suppose that a Canadian worker can produce 50 cell phones or 5 televisions in a typical workweek, while a Japanese worker can produce 45 cell phones or 5 televisions in a typical workweek. What can we conclude from these numbers?Multiple choice question.Canada has a comparative advantage in the production of cell phones.Canada has an absolute advantage in the production of televisions.Japan has an absolute advantage in the production of televisions.Japan has a comparative advantage in the production of cell phones.

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

Japan produces electronics and cars. Dedicated capitals are required in these two industries, while labour can flow freely between them. Japan exports cars. The world relative price of cars increased due to higher than expected demand. In the short run, we expect thatGroup of answer choicescapitals are reallocated to the car industry.car industry output increases.marginal product of capital increases in the electronics industry.car industry pays higher nominal wage than electronics industry.