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If Japan Does Not Have a Comparative Advantage in Producing

Question 40

Multiple Choice

If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy of reducing or eliminating imports of rice into their country would include:


A) ​Japan will be able to consume a combination of rice and other goods' consumption beyond their domestic production possibilities curve.
B) ​the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.
C) ​the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall.
D) ​the price of rice in Japan will fall.

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