Author Question: Suppose Japan has a comparative advantage over Canada in the production of DVDs. This means that ... (Read 97 times)

dejastew · **on:** Jun 30, 2018

Suppose Japan has a comparative advantage over Canada in the production of DVDs. This means that Japan:
a. needs fewer resources to produce DVDS than does Canada.
b. has better technology for producing DVDs than does Canada.
c. has a lower opportunity cost of DVD production than does Canada.
d. can produce more DVDs in a given period of time than can Canada.

Question 2

Demand-pull inflation is typically caused by rapidly rising costs of production.
a. True
b. False
Indicate whether the statement is true or false