How do comparative advantage and absolute advantage differ? Absolute advantage means more can be made given the resources while comparative advantage means the good may be made cheaper given the other items that could also be produced.   Absolute advantages is a relative concept when comparing production of different items, and comparative advantage means a country is better at at one particular good.   Comparative advantage implies a country is better at producing everything better than another country and absolute advantage means they're better at a few things.   Comparative advantage refers to production of agricultural goods while absolute advantage refers to industrial production.

Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Antonio takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is The opportunity cost of replacing a set of brakes for Antonio is has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. has an absolute advantage in brake replacement. has an absolute advantage in clutch replacement. Antonio Isabella Antonio Antonio

Economic theory suggests that we can increase productivity by:     Specializing according to absolute advantage.   Specializing according to comparative advantage.   Specializing according to either absolute or comparative advantage.   It is impossible to increase productivity

Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade patterns, absolute advantage or comparative advantage? Why?

The following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****

Robin and Betty can each pick mangoes and oranges. The following table summarises the time it takes each to perform each task. Time to pick 1kg of mangoes Time to pick 1kg of oranges Robin 40 minutes 10 minutes Betty 30 minutes 20 minutes Based on this information, has a comparative advantage in picking and an absolute advantage in picking (Need help? Read chapter 1.3 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part1/ch1/s3) Robin; oranges; oranges Robin; mangoes; oranges Betty; mangoes; oranges None of these. Betty; oranges; mangoes

Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question:  Who has absolute advantage in the production of hamburgers and who has absolute advantage in the production of pancakes?

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Mexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 162 135 90 108 18 90 180 54 36 45 270 54 Which country has an absolute advantage in producing tacos? The United States Which country has a comparative advantage in producing tacos? Mexico Suppose the United States is currently producing 180 tons of hamburgers and 54 tons of tacos and Mexico is currently producing 36 tons of hamburgers and 45 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer)

Suppose two countries, France and Germany, use only capital and labor for production. Factor endowments of the nations are presented in the table below. Capital | Labor France 2200 800 Germany 880 220 a. Which country is labor-abundant? Which country is capital-abundant? b. Assume that both countries produce two goods, cars and wine. If cars are capital-intensive and wines are labor-intensive, which country should specialize in the production of cars? Which country should specialize in the production of wines? Explain why?

Because of the existence of comparative advantage, the total output of goods is higher when each producer?