eco1 - Japan has a lower opportunity cost in producing...

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a) One person produces: Grains (tons/yr) Cars (per yr) American 10 4 Japanese 5 4 b) c) US: Opportunity cost of a car: 2.5 tons of grain Opportunity cost of grain: 2/5 of a car Japan: Opportunity cost of a car: 1.25 tons of grain Opportunity cost of grain: 4/5 of a car d) America has absolute advantage in Grain. Both America and Japan have the absolute advantage in Cars. e) America has a lower opportunity cost in producing cars.
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Unformatted text preview: Japan has a lower opportunity cost in producing grain. f) America: 500,000,000 tons of grain 200,000,000 cars Japan: 250,000,000 tons of grain 200,000,000 cars g) USA produces 7.5 tons of grain for 1 car. Japan produces 1.23 tons of grain for 3 cars. USA gives 2 tons of grain for 1 car....
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