1) What does it mean if a country can produce something at a lower opportunity cost, and why would that be considered as a comparative advantage?
Q: How is comparative advantage related to early American production?
A: A country has a comparative advantage at producing something if the country can produce it at lower…
Q: Q5. Explain how two nations / countries could benefit from producing and Trading in goods where…
A: Comparative Advantages:- It can be defined as the potentiality of the producer to produce a product…
Q: What does it mean to have an absolute advantage? What does it mean to have a comparative advantage?
A: The transfer of capital, goods, and services across international borders or territories in response…
Q: The United States exports corn and aircraft to the rest of the world, and it imports oil and…
A: The comparative advantage refers to when the country exports goods in which its opportunity cost of…
Q: Which nation has comparative advantage in producing good X? Why? Explain why these nations can…
A: Comparative advantage refers to the advantage of producing a good at a lower opportunity cost than…
Q: Pounds of beef per worker per hour Pounds of chicken per worker per hour Boston 3 3 Chicago 2…
A: Opportunity Cost: It is the cost of next best alternative forgone in the process of executing an…
Q: Which goods will a nation typically import? a. those goods in which the nation has an absolute…
A: Imports are the goods and services which are made in a foreign country and consumed in the domestic…
Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…
A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…
Q: Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia,…
A: Absolute advantage refers to the ability of a country to produce goods more efficiently or more…
Q: Q) When a country has a comparative advantage in producing a certain good, A: the country should…
A: Absolute Advantage: The absolute advantage arises when a country produces more output from the given…
Q: According to the theory of comparative advantage, countries gain from trade because ___a. trade…
A: In the international market, a theory of comparative advantage has its significance to define the…
Q: The advantage enjoyed by one country over another, when it has a lower opportunity cost in producing…
A: If country A is able to produce more amount of good X than country B with the same level of…
Q: What is the doctrine of comparative advantage? Provide an example of a particular country’s…
A: International trade: - it means the buying and selling of goods and services with other countries.
Q: When countries specialize based on their comparative advantage and trade with each other, how does…
A: Gains of trade happens when countries trade with one another and trade on goods which they…
Q: Relative to China, in which industries do you think the US has a comparative advantage (in which…
A: US is a developed and one of the most developed economy in the world.
Q: Consider two countries, Spain and Norway, that use labour as an input to produce two goods: shoes…
A: If a nation utilizes less resources to create a product, it has an absolute advantage over another…
Q: Suppose that Portugal and Switzerland both produce jeans and stained glass. Portugal's opportunity…
A: Given information: There are two countries, i.e., Portugal and Switzerland They produce two goods,…
Q: (a) In the Bahamas, what is the opportunity cost of a ton of pineapples, and of a ton of rice? (b)…
A: Opportunity cost is the best next best cost , or next best alternative called opportunity cost, so…
Q: n Germany it takes three workers to make one television and four workers to make one video camera.…
A: Country Television Video Camera Germany 3 workers 4 workers Poland 6 workers 12 workers
Q: Which country has the comparative advantage in production of Good A?
A: David Ricardo propounded the theory of comparative cost advantage. He has given detailed it in his…
Q: The table below describes production possibilities for Mexico and Nigeria. Each number in the table…
A: Mexico needs 10 workers to produce one unit of the shoe and 12 workers to produce one unit of…
Q: If one country can produce a good with fewer resources than another country, this is calleda.…
A: Specialization:- Specialization is a manufacturing approach in which an organization pay more…
Q: Automobiles Computers…
A: According to the question, it is given that : Automobiles Computers USA 20 15 Germany 15 5…
Q: Labour hours needed to make 1 unit Cars Airplanes Amount producedin 24 hours: Airplanes Cars Canada…
A: Comparative advantage is theory which tells about that a country should export that goods and…
Q: Suppose that Cambodia decides to become self-sufficient in bananas and even to export t In order to…
A: Comparative advantage: It refers to the nation's production of goods and services with the lowest…
Q: Is it possible to have a comparative advantage without having any absolute advantages ? Yes or No
A: A nation is said to have an absolute advantage in the production of a good (let's say X) if the…
Q: Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in…
A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…
Q: Suppose a capital abundant country, such as Canada, enters into free trade with a natural resource…
A: An economic entity is said to possess a comparative advantage in the production of a good or service…
Q: Discuss the opportunity cost you incur for some activity in your life. Additionally, what activity…
A: Opportunity cost(OC) refers to the value of something when a specification is chosen. It is the cost…
Q: According to the Absolute and Comparative Advantage, which option is correct? the country with…
A: The ability of a nation to create goods and services at a lower opportunity cost rate than other…
Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazillian…
A: The international trade can be beneficial if the theories support the requirements by a country. The…
Q: Which of the following statements is true? A country that has the absolute advantage in producing a…
A: Opportunity cost means what must be given up in order to get some other item. It is reflected in the…
Q: TRUE OR FALSE: It is possible to have comparative advantage in producing a good or service without…
A: Answer is given below
Q: Bill and Fred bake cakes and pies. Bill's opportunity cost of baking 1 pie is 3 cakes. Fred's…
A: Bill's opportunity cost of baking 1 pie is 3 cakes. Fred's opportunity cost of baking 1 pie is 5…
Q: Suppose that Portugal and Austria both produce rye and cheese. Portugal's opportunity cost of…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: Give three examples of trade in servieces and explain how comparative advantage may play a role in…
A: Trade in services: It generally refers to Sale and Purchase of all the Non material or intangible…
1) What does it mean if a country can produce something at a lower
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- Q) When a country has a comparative advantage in producing a certain good, A: the country should import that good. B: the country should produce just enough of that good for its own consumption. C:the country’s opportunity cost of that good is high relative to other countries’ opportunity costs of that same good. D: then specializing in the production of that good and trading for other goods could allow that country to consume at a point beyond its production possibilities frontierY 100 Country A X Y 40 Country B 40 X 20 a) How much of Good Y will Country B produce if they specialize in their comparative advantage? 40 b) By themselves, if Country B produces 18 units of Y, what is the maximum amount they could produce of Good X? 18 c) If the terms of trade proposed are 5 X for 10Y, how much will Country B be able to consume of Good Y after trade if they specialize in their comparative advantage before trading? 402) Under what conditions does comparative advantage lead to gains from trade? b) What is splitting up the value chain?
- e. Which country has an absolute advantage in the production of which good(s)? Which country has a comparative advantage in the production of which good(s)? f. If the countries start trading with each other, which country will specialize and export which good?What does it mean to have an absolute advantage? What does it mean to have a comparative advantage?1) This question looks at the theory of comparative advantage. Imagine a world in which there are just two countries, F and G, and just two goods, X and Y. Consider the following six situations. Each one shows that the two countries can produce for a given number of resources. Assume constant costs. In each case give the (pre-trade) opportunity cost of X in terms of Y. (a) Country F: 10 units of X or 20 units of Y. 1X = ................. Y Country G: 10 units of X or 10 units of Y. 1X = ................. Y (b) Country F: 12 units of X or 12 units of Y. 1X = ................. Y Country G: 6 units of X or 8 units of Y. 1X = ................. Y (c) Country F: 8 units of X or 8 units of Y. 1X = ................. Y Country G: 10 units of X or 10 units of Y. 1X = ................. Y (d) Country F: 20 units of X or 5 units of Y. 1X = ................. Y Country G: 18 units of X or 2 units of Y. 1X = ................. Y (e) Country F: 10 units of X or 8 units of Y. 1X = ................. Y…
- Assume that country A can use its resources to produce 320 computers or 320,000 books, while country B can produce 16 computers or 32,000 books. Can we determine which country has an absolute advantage in producing computers? Who has the comparative advantage in producing computers? Draw the possibility frontiers for both countries and find their slopes. In the case the two countries trade, which country exports what? Show graphically if country A benefits from trade.1. Determine which country has a comparative advantage in each good.1) Write a clearly positive economic statement referring to comparative advantage.Explain why is it a positive statement.
- A) Which nation has an absolute advantage in the production of cars?B) Which nation has an absolute advantage in the production of red wine?Q5. Explain how two nations / countries could benefit from producing and Trading in goods where they have comparative advantages?2 Why might a country still produce a good on a smaller scale even if it does not have the comparative advantage in it?