Answer to Question #270165 in Macroeconomics for Audrey

Question

Q.1.16 Japan has a comparative advantage over Germany in the production of cars if it: (2) (1) Is able to produce cars at a faster rate than Germany; (2) Produces cars at a lower opportunity cost than Germany; (3) Has the absolute advantage in car production; (4) Exports more cars than Germany. Q.1.17 Which of the following is NOT a justification for government involvement in the economy? (2) (1) To prevent excessive monopoly power by regulating monopolistic industries; (2) To ensure that common property resources are not over exploited; (3) To provide public goods as the private sector is usually not willing to provide these;

Answer 1

Q.1.16) Produces cars at a lower opportunity cost than Germany

Q.1.17) To provide public goods as the private sector is usually not willing to provide these;