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The table below represents the maximum amount of Rice or Motorcycles, the United States and Japan could produce in one hour of labor time if

The table below represents the maximum amount of Rice or Motorcycles, the United States and Japan could produce in one hour of labor time if they each specialized entirely in one good or the other. So the US could produce either 500 bushels of rice or 150 motorcycles while Japan could produce either 400 bushels of rice or 80 motorcycles RICE MOTORCYCLES USA 500 bushels 150 JAPAN 400 bushels 80 Assume the US and Japan both operate on straight-line production possibilities curves. Which one should specialize in producing Rice? Why? (2 points) (I suggest one or two sentences- use your calculations to help you to explain your answer) If the country producing Rice charges 0.4 motorcycles per bushel of rice, will the exchange occur? Explain. (2 points) (I suggest one or two sentences- use your calculations to help you to explain your answer) Explain your answers to receive full credit. I suggest you spend ten minutes on this question. Hint: calculate the opportunity cost for one bushel of rice

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