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Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan.

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Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan. Opportunity Cost of 1 Car 1 Ton of Grain (In terms of tons of grain given up) (In terms of cars given up) United States 5/9 5/9 Japan 3 V 1/3 Given this information, the United States " has an absolute advantage in producing cars, and neither country * has an absolute advantage in producing grain. Also, the United States * has a comparative advantage in producing cars, and Japan has a comparative advantage in producing grain. Assume that without trade, half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Cars Produced and Consumed Tons of Grain Produced and Consumed (Millions) (Millions) United States Japan

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