ABSOLUTE ADVANTAGE & COMPARATIVE ADVANTAGE Q.6. An average worker in brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, whilst an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. Who has the absolute advantage in coffee? Explain II. Who has the comparative advantage in coffee? Explain III. If the two countries specialize and trade with each other, who will import coffee? Explain

Q: n Germany it takes three workers to make one television and four workers to make one video camera.…

A: TV Video game Germany 3 4  Poland 6 12

Q: Country A can produce either 200 personal computers or 800 tons of potatoes with the same amount of…

A: (1). Country B has the absolute advantage in producing personal computers because it produces 300…

Q: Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations…

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: Lilac Poland and Wales both produce boots and wheat. Poland's opportunity cost of producing a bushel…

A: Introduction A country's capacity to produce a specific good or service for less money than its…

Q: Suppose a world with two persons and two goods. Is the following statement True, False, Both (True…

A: The objective of the question is to determine whether each person in a two-person, two-goods world…

Q: Explain why it is possible for a country to have an absolute advantage in all goods, and yet it is…

A: The absolute advantage is the ability of an economy to produce commodities more efficiently than its…

Q: In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10…

A: What rate the commodities will be exchanged in the international trade it is given by classical…

Q: C O O O Suppose that Canada can make 45 kilograms of cheese or 60 bottles of wine with one year's…

A: In order to solve this problem, let us first understand the difference between absolute and…

Q: Assume that country A can use its resources to produce 320 computers or 320,000 books, while country…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Refer to Table 3-3. What is the opportunity cost of one sweater for Maria? O 2 coats 3 coats 4 coats…

A: Given  The production schedule of Maria and Courtney in 40 hours of labor    Sweaters  Coats…

Q: Explain briefly why a country can have an absolute advantage in the production of two goods, and yet…

A: In international market, trade between the countries take place on the basis of various approaches…

Q: The table shows the units of output a worker can produce per hour in Germany and Korea for two…

A: A country has a comparative advantage if it can produce an item or service at a lower/less…

Q: Suppose Morgan can produce 50 pizzas or 200 beers in a day and Jack can produce 10 pizzas or 100…

A: An individual has the comparative advantage if it can produce a good at lower opportunity cost than…

Q: ase see below. Need help with this.

A: Comparative advantage arises when the country produces good at lower opportunity cost than other…

Q: In one hour, Sue can produce 90 caps or 6 jackets, and Tessa can produce 20 caps or 4 jackets. Thus,…

A: In one hour, Sue can produce 90 caps or 6 jackets Sue's opportunity cost of producing caps in terms…

Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…

A: ‘Comparative advantage’ refers to the ability to produce a good at a lesser ‘opportunity cost’ than…

Q: Country X Country Y Phones Television sets a) Fill in the table to show that country x has an…

A: Absolute advantage is the ability for producing a good using fewer inputs while comparative…

Q: Countries A and B are both producers of wine and sausages. The table below shows their respective…

A: Absolute advantage is where a country can produce more output as compared to the other country using…

Q: In India one person can produce 300 pounds of rice or 100 shirts in one year. In China one person…

A: In international trade, a country is said to have an absolute advantage in producing a good if it…

Q: Refer to Table 3-5. Which country has a comparative advantage in each product? a. Canada has a…

A: A country is having a comparative advantage in the production of a good owing to the fact that it…

Q: In Germany it takes three workers to make one television and four workers to make one video camera.…

A: The potential benefits that a person, investor, or company loses out on by choosing one option over…

Q: Homework (Ch 03) When country has a comparative advantage in the production of a good, it means that…

A: The opportunity cost of production refers to the amount of a commodity that must be sacrificed to…

Q: A) With the following data decide which country has comparative advantage for which. Show your math.…

A: Comparative advantage enables us to find out, which nation produces the good at the lowest possible…

Q: wine SERE54321 90 80 70 60 50 40 30 20 10 PPF Portugal CPF 0 0 10 20 30 40 50 60 cloth wine 90…

A: PPF stands for Production Possibility Frontier, which is a graphical representation showing the…

Q: Larry and Megan are farmers. Each one owns a 12-acre plot of land. The following table shows the…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: In USA one unit of labor can produce 25 computers or 25 bushels of wheat. In Thailand one unit of…

A: Since you have posted a question with multiple sub-parts, we are answering the first three sub-parts…

Q: Suppose that an hour of work in Germany can produce 5 pastries or 4 sausages. In Denmark, an hour of…

A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…

Q: Suppose two countries, China and India, produce two goods: rice (R) and skinny jeans (S). Assume…

A: Solution :  Comparative Advantage: It is an advantage to a producer over another in the production…

Q: According to the principle of comparative advantage, - countries should specialize in the…

A: According to the law of comparative advantage, In the 2x2 model, even if one nation is less…

Q: What does each producer have an absolute or comparative advantage in?

A: Absolute advantage is the ability to produce goods and services at lower cost than the other person.…

Q: The Demand function for a product is pd(q) = 80(0:1q + 0:2)2, where q is in millions of tons and…

A: Given:Demand function, P(q) = 800.1q+0.22Equilibrium quantity, q = 18

Q: can you help me rewording this paragraph?  Since Ghana and Côte d'Ivoire have similar environment,…

A: Ghana shares similar economy as Côte d'Ivoire, and there are differences in the economy of Ghana and…

Q: Numbers and Graphs: Chapter 20 Arcardia Euphoria Combinations Good X Good Y Good X Good Y A 30 0 240…

A: Arcadia can produce:Good X = 30Good Y = 300For Arcadia, Opportunity Cost of Good X= 300/30 =…

Q: In Country T, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of…

A: It might be argued that if countries used the concept of comparative advantage to choose what…

Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Answer the following questions about Comparative Advantage, Specialization and Trade. The link below…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Using the numbers in the table, determine which country has a comparative advantage in producing…

A: When a decision is made to devote resources (such as time, money, or effort) to a particular choice…

Q: Suppose that France and Germany both produce wine and schnitzel. Thne table below snows combinations…

A: The exchange of goods and services across borders is known as the international trade. International…

Q: Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40…

A: Trade tends to raise the total international output by specialization.

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.