-If the U.S. and Japan have the production possibilities shown in the table, and produce according to their comparative advantages:

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than another. Without the specific table, we generally assume that if the U.S. and Japan are producing according to their comparative advantages, the U.S. would focus on grain (typically due to its vast agricultural resources) and Japan on microchips (given its advanced technology sector), reflecting their respective lower opportunity costs in these goods.

-If the US