Question

Japan and Korea both harvest wheat and fish. For each bushel of wheat Japan produces, it gives up the opportunity to catch 75 pounds of fish. Korea can harvest one bushel of wheat for every 50 pounds of fish it catches. Which of the follow is true regarding opportunity costs between the two countries? The opportunity cost of harvesting wheat is lower in Japan. Japan and Korea would not benefit from trade. If Japan and Korea were to trade, Korea should specialize in wheat and Japan should specialize in harvesting fish If Japan and Korea were to trade, Japan should specialize in wheat and Korea should specialize in harvesting fish

Answer 1

	Wheat	Fish	Opp cost of Wheat	Opp cost of Fish
Japan	1	75	75	0.01
Korea	1	50	50	0.02

Q1. Option 3

From the above table we can observe that the opportunity cost of wheat is less for Japan and opportunity cost of Fish is less for Korea

Q2. Option 3

When compared between Japan and Wheat, we can observe that the opportunity cost of wheat is lower for Korea