If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include: Question 33 options: Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve. the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall. the price of rice in Japan will fall.

If Japan does not have a comparative advantage in producing rice and adopting the Japanese policy will reduce or eliminate imports of rice that will increase the domestic demand for rice and increase the real income of the Japanese producer. on the other hand, the high demand for rice will increase the price in the domestic market and reduce the real income of the Japanese consumer. Therefore, the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall. The answer is option B

Answered: If Japan does not have a comparative…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include:

Question 33 options:

	Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve.
	the real incomes of Japanese rice producers would rise, but the real incomes of Japanese rice consumers would fall.
	the real incomes of Japanese rice consumers would rise, but the real incomes of Japanese rice producers would fall.
	the price of rice in Japan will fall.

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