The United States' comparative advantage over Japan in the production of rock-n-roll music implies that (for a similar quality of music)the
A)opportunity cost of production is less in Japan.
B)absolute cost of production is less in the United States.
C)absolute cost of production is less in Japan.
D)opportunity cost of production is less in the United States.

Question

Quizplus · Accepted Answer

Comparative advantage is about opportunity cost, not absolute cost. The U.S. has a comparative advantage in rock-n-roll music, which means that the opportunity cost of producing rock-n-roll is lower in the U.S. than in Japan. This means that if both countries were to produce the same quality of rock-n-roll music, the U.S. would have to give up less of something else to produce it, making it more efficient to produce in the U.S.

The United States' Comparative Advantage Over Japan in the Production