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If Japan Gives Up 10 Bushels of Rice to Produce

Question 116

Multiple Choice

If Japan gives up 10 bushels of rice to produce one bicycle, while Australia gives up five bushels of rice to produce one bicycle, then:


A) the opportunity cost of producing bicycles in Australia is higher than in Japan.
B) Japan has a comparative advantage in the production of bicycles.
C) total output will be highest if Japan specialises in rice and Australia specialises
In bicycles.
D) total output will be highest if Australia specialises in rice and Japan specialises In bicycles.

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