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- For a producer to have a comparative advantage in a good is it necessary to be the most efficient producer of that good? a) Yes b) NoA producer has a comparative advantage in a good if it is the lowest opportunity cost producer of this good, even if it is not the most efficient producer of this good. True FalseAn economy is said to have a comparative advantage in the production of a good if it can: produce that good with more resources than another economy. produce that good with a higher opportunity cost than another economy. produce that good outside its production possibilities curve. produce the good at a lower opportunity cost than another economy.
- a) Determine which country has a comparative advantage in each good . b) If Country A and Country B each have 100 units of labour , calculate the maximum production of each good for both countries .Economics is the study of the allocation of the abundant resources in a country. True FalseWhich country has the absolute advantage in production of Good A? Group of answer choices Country Y Country X Neither country has an absolute advantage of producing Good A
- What is Production Efficiency and Inefficiency in economics? Explain with the help of a diagram. When does a country have a comparative advantage over producing a good? Explain with examples.Which country has a comparative advantage in the production of wine?If an economy has the absolute advantage in the production of all goods over another economy, then mutually beneficial trade is not possible between the two economies. True or False
- What distinguishes comparative advantage from absolute advantage in production?Draw the graphs and explain the factors that cause the movement along the demand curve and shifts of demand curve. Compare and explain absolute and comparative advantage by giving examples. Draw the graphs and explain the factors that cause the movement along the supply curve and shifts of supply curve.Two countries produce two goods and they each have 3 million hours of labor. Consider the table that shows the quantity produced per labor hour: Shirts Corn (bushels) Alpha 4 12 Beta 2 10 If each country specializes in the good for which it has a comparative advantage then in total the two countries can together produce million shirts and million bushels of corn. Enter whole numbers.