Greece and Italy both produce olive oil and cheese. With the same amount of labour Greece produces 15,000 tonnes of cheese per year and 12,000 barrels of olive oil and Italy produces 25,000 tonnes of cheese and 15,000 barrels of olive oil. Determine and explain the comparative advantage for each country.

Q: The table below shows the number of gallons of Wine and pounds of Cheese produced in the United…

A: International trade:International trade means buying and selling goods and services from outside the…

Q: The table below shows the productivity of one hour of labor for bread and shirt in two regions.…

A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…

Q: 5. The price of trade Suppose that France and Austria both produce jeans and wine. France's…

A: Opportunity cost is the measure of potential increase a financial backer passes up when they focus…

Q: Refer to Table 5. Chile has O a comparative advantage in wine production. O an absolute advantage in…

A: The ability to produce more goods and services at a better calibre than competitors is considered an…

Q: Econ Land is trading corn in exchange for computers with the Republic of Trade now (you might…

A: The transfer of services and goods that takes place between individuals or entities being done in…

Q: Suppose that there are only two countries (the United States and Mexico) and only two goods (…

A: Comparative advantage is an economic principle that states that a country, individual, or entity can…

Q: e. Is it possible for USA to gain by trading with Thailand? Explain. f. Is it possible for Thailand…

A: Theory of comparative advantage states that a country should produce those goods where it has lower…

Q: France exports wine and imports beef. Suppose that French wine becomes more fashionable globally…

A: When the demand for French wine increases, it pushes up the prices of French wine in world market.…

Q: (Table) Germany has a comparative advantage in producing: Skirts 12 20 Sweaters 6 Greece 4 Germany…

A: Comparative advantage is an economic concept that refers to a situation in which a country,…

Q: The table below summarizes the productivity of workers in bread and shirt production in two parts of…

A: This table is actually showing the productivity of breads and shirts which is given here by using…

Q: Austria can produce 1 unit of food using 12 hours of labour time and 1 unit of machinery using 4…

A: Production possibility frontier is a graphical representation of different combinations of outputs…

Q: In Qatar, a worker can produce either one unit of salt or two units of pepper. In Korea, one worker…

A: When a product can be produced at a lower opportunity cost by a country than its other trading…

Q: Suppose in a given year, France can produce 100 tons of cheese or 500 oranges. Spain can produce 150…

A: "According to the comparative advantage countries will produce and export those goods which they can…

Q: Country X has a comparative advantage in producing paper and country Y has a comparative advantage…

A: Since the opportunity cost of production is reduced as a result of specialization, more goods are…

Q: Explain how both countries can gain comparative advantage with the given information in the…

A: Comparative advantage can be defined as when you do something you are expert in with sacrificing the…

Q: Corn 60 O 60 80 O 120 United States 20 60 Peanuts Corn Using the graph above, if Canada has a…

A: Comparative advantage is the ability of an individual, organization, or nation to produce a certain…

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: (millions of tons) Key Torland Leeland 20 15 10 5 5 10 15 20 25 Honey (millions of tons) Figure 2…

A: Comparative advantage is when a country is able to produce a particular good or service lower…

Q: We can conclude that Morocco has a comparative advantage in the production of tables. [True or…

A: Comparative advantage refers to the ability of a country or an individual to produce the good at a…

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: We can conclude that Spain has a comparative advantage in the production of chairs. [True or False]

A: Comparative advantage is focusing on the possibility of trade even though there is no absolute…

Q: (1 point) Consider an international trade model consisting of three countries X, Y, and Z. Suppose X…

A: Let's denote the total production of country Z, country X as Y, and country Y as Z. From the…

Q: LM K furniture Refer to the figure above. If cars are capital intensive and furniture is labor…

A: Production possibility frontier shows the different combinations of two goods that can be produced…

Q: The world price of a computer is s600, The price of a computer in Brazl was $700 before opening the…

A: International trade refers to the import and export of goods and services across the world. Imports…

Q: Suppose that each country currently has 140 workers and each decides to transfer some amount of…

A: There are 2 countries: United States (US) and ThailandEach country has 140 workersTransfer of…

Q: China and Thailand jointly produce and efficiently trade tea and noodles. China has a comparative…

A: In the international market, when two countries make a trade transaction on the basis of comparative…

Q: Consider the following exports and imports for a country: Exports   Imports   Refined Petroleum…

A: Trade refers to the exchange of goods, services, or resources between two or more parties, typically…

Q: Suppose the international relative price of gold is 10 bushels of wheat/bar of gold. If South Africa…

A: Given in the question productivity in two countries : Opportunity cost of wheat in South Africa =…

Q: 56 56 48 48 PPF 40 40 32 32 24 PPF 24 16 16 - -- -- -- - 8 16 24 32 40 48 56 64 16 24 32 40 48 56 64…

A: Opportunity cost refers to the loss due to giving up the best alternative in making a decision.

Q: Automobiles                 Computers…

A: According to the question, it is given that :   Automobiles Computers USA 20 15 Germany  15 5…

Q: Poland requires 4 hours of labor to produce 1 ton of coal and I hour of labor to pro wheat. The…

A: Given information: Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to…

Q: 2) If technological change allows on industry to save on the use of the factor it uses relatively…

A: In economics, trade refers to the exchange of goods and services between individuals, firms, or…

Q: . Japanese labor productivity is roughly the same as that of the United States in the manufacturing…

A: The argument that the United States' comparative advantage lies in non-traded services and this…

Q: Terms of trade Suppose that Greece and Austria both produce oil and wine. Greece’s opportunity cost…

A: Opportunity cost shows that some units of one goods must be given up in order to produce more units…

Q: Look at the following table comparing U.S. imports from several countries to capital/labor ratio in…

A: Imports: Imports are foreign goods and products purchased by residents, organizations, and the…

Q: Explain which product each of the countries should specialise in and export. Use the information…

A: The theory that states that there exists an advantage when the economy could be able to produce at a…

Q: Labor Input to Produce Chairs and Tables Spain 1 Morocco 3 Chair Table 10 5

A: TRUE It can be concluded from the given schedule that Spain has a comparative advantage in the…

Q: 1. Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…

A: Absolute advantage: If a country has a lower cost of producing a commodity compared to some other…

Q: (Use Table 1) Harold has a comparative advantage in and Wilhelmina has a comparative advantage in…

A: Comparative advantage refers to the ability of an individual or country to produce the good at a…

Comparative Advantage and Absolute Advantage Analysis

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