Answered: Ricardo's theory of trade is based on_…

Business

Economics

Ricardo's theory of trade is based on_ ratio). (A: productivity of labor; B: opportunity cost; C: capital labor

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Turkey Greece Olives Textiles The numbers in the table above represent the number of labor hours it…

A: Answer - Given in the question- Turkey Greece Olives 3 7 Textile 2 8 Evaluating the…

Q: Discuss how the production theory and price determinations help businesses achieve both their…

A: The Theory of Production is defined as an effort to explain the principles that are followed by…

Q: The World Trade Organization O A. was established to resolve disputes arising under world trade…

A: WTO (world trade organization) is the global organization that deals with the regulation of trade…

Q: What is the viewpoint of Ricardo regarding the Comparative Difference in Costs?

A: Answer: According to David Ricardo, comparative cost discrepancies, rather than absolute cost…

Q: 9

A: 1. Marginal rate of technical substitution = -dL/dK = -dx1/dx2 = -2x2/2x1 = -x2/x1 = -5/x1 Option D…

Q: What is the difference between resource labor and resource entrepreneurship?

A: Labor could be a factor of production and is required to induce many tasks done not just those we…

Q: Regional trade blocs

A: Regional trade blocs talk to agreements among a couple of countries within a specific geographic…

Q: 9. Answer ALL parts of this question. Holland produces cars and beer, using labour and capital, in a…

A: Given information Country Holland Labor unit requirement for car=4 in hours Capital units…

Q: Wenatchee is the apple capital of the world (or at least that's what the sign says). One of the…

A: a. Oranges are being produced in Florida which is being damaged because of the hurricane that came…

Q: Briefly explain what is meant by: 1) account profit; 2) economic profit; and 3) zero economic…

A: 1. Accounting Profit: The accounting profit refers to the profit that comes after subtracting the…

Q: A firm is considering moving from the United States to Mexico. The firm pays its U.S. workers $15.00…

A: Marginal product is the change in total product due to an additional labor hired. The marginal…

Q: are tal (C) factors of production for supply of land, the Marginal Productivity of labour is the…

A: The ability to produce a certain commodity or service at less of an opportunity cost than its…

Q: Which of the following are common characteristics of multinational enterprises (MNES)? Check all…

A: Multinational enterprises are large corporations that operate in multiple countries, engaging in…

Q: 2. Karissa's firm uses only labor to produce its output, q, according to the following production…

A: The production function shows the relationship between the inputs used and output produced. The…

Q: Trade brings advantages to society because through trade O specialization can occur. O output is…

A: It can be defined as a concept that shows the transaction of commodities and services from one…

Q: Part One Question 1 We are in a specific factor world, and we have two factors of production: labour…

A: The ability to produce a certain commodity or service at less of an opportunity cost than its…

Q: Use the following table to answer the question below:

A: Diseconomies of scale:- In the competitive market, a firm operates at a level where the price is…

Q: are inputs to the final product, like cotton, wheat, iron ore, and soybeans that have undergone…

A: Raw materials are the basic substances or elements that are used as inputs in the manufacturing or…

Q: why would divisionof labor without trade not work?

A: Division of labor refers to the assignment of different parts of processes or task to different…

Q: QUESTION 33 Ricardo's theory of trade is based on (A: productivity of labor; B: doportunity cost; C:…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Consider the following information: the marginal products of labor for the US in producing Cars and…

A: Opportunity cost is the value of what an economic agent which may be a consumer or a producer could…

Q: Who stated explicitly for the first time, the Law of Comparative Costs?

A: To find : Who stated above statement.

Q: 9. Answer ALL parts of this question. Holland produces cars and beer, using labour and capital, in a…

A: Given information Country Holland Labor unit requirement for car=4 in hours Capital units…

Q: 3.5 A firm can use three different production technologies, with capital and labor requirements at…

A: Production Function: Production function represents a relationship between the input and output. It…

Q: 9. Answer ALL parts of this question. Holland produces cars and beer, using labour and capital, in a…

A: Given information Country Holland Labor unit requirement for car=4 in hours Capital units…

Q: Factors of Production Innovation and physical capital are two of the four factors of production.…

A: - 1956 Federal Aid Highway Act - Describe 3 other examples of economic concentration- What are the…

Q: Explain each of the factors of production and provide examples of each. (need to be clear and…

A: Production refers to the process of combining various resources (material and immaterial inputs) in…

Q: "Schumacher agrees with Adam Smith's claim that a division of labor is beneficial to workers." True…

A: Division of labor is defined as the separation of a production process into a number of different…

Q: Q1. Let suppose in the world there is two country, Country X and Country Y. In country X there is…

A: Answer c) They should move towards trade because they can increase their production. Country X has…

Q: Suppose the firm is operating in a high-wage country, where capital cost is $50 per unit per day and…

A: For finding the cheapest technology we have to find the total cost of each technology. For finding…

Q: game is played with complete information, is a tit-for-tat strategy case? Explain using your own…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first 3 question for you. If…

Q: Parts c and d in the attached image please

A: We are given two countries Australia and New Zealand. Both countries produce and consume two goods…

Q: Consider a tropical island economy with only two sectors: souvenir manufacturing and hospitality…

A: There are only 2 sectors in the economy: Souvenier manufacturing & Hospitality. It is provided…

Q: c. Going from Autarky to free trade, has the marginal product of capital in the Starship production…

A: Moving from autarky to free trade typically leads to an increase in the marginal product of capital…

Q: onsider the following diagram, which shows units of labour on the x-axis and units of capital on the…

A: The Isocost line depicts the combinations of capital and labor that can be purchased under a given…

Q: 5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain…

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

Q: Explain production function to a non-academic audience.

A: Factors of production or economic resources are the major building blocks of production in an…

Q: In your own words, explain the Comparative Theory of David Ricardo

A: The gain from trade is the ability of two agents to increase their possibilities for consumption by…

Q: Please help me with this question in detail. Thank you

A: b)Wage = Marginal Product It is given that Home country is capital abundant and has only 2 units of…

Q: 1. The nation of Ectenia has 20 competitive apple orchards, all of which sell apples at the world…

A: Marginal product is a measure of the additional output that is produced by adding one more unit of a…

Q: The unit labour requirements of the production of cotton are 2 and 3 and for wheat is 4 and 5 for…

A: Given:Labor input in Lincolnland: 400 units.Labor input in Smithland: 200 units.Unit labor…

Q: Define Static analysis, comparative analysis, and dynamic analysis, also State the main difference…

A: Data is factual information that is collected for the population. The data is organised in a way…

Q: Writing in 1776, Adam Smith was concerned not only with the profound effects of the division of…

A: An economic concept known as the division of labor involves splitting up a complicated production…

Q: he law of one price says that the price of... a. Labour, measured in terms of its opportunity…

A: Law of one price states that price of identical product or good would be same across the market if…

Q: Consider how an appreciation of the concept of opportunity cost may be of use in explaining why it…

A: Opportunity cost refers to the cost of the opportunity foregone by not choosing it. It occurs when…

Question

Ricardo's theory of trade is based on
ratio).
(A: productivity of labor; B: opportunity cost; C: capital labor

Expert Solution

Step 1

David Ricardo theory of international trade is landmark and it has refined the theory of Adam Smith. It explained cause of international trade in more rational manner which is relevant even today.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

VARIABLE COSTS OF PRODUCTION UNDER THEORY OF COMPARATIVE COSTS, COMMENT ON THE GRAHAM'S VIEW?
How can specialization lead to a division of labor for a business? A. It guarantees that all employees work on every part of a product. B. It allows each employee to be an expert in a particular area of production. O C. It greatly increases the rate of voluntary exchange between employees. D. It ensures that all employees are capable of making a product on their own. SUBMIT E PREVIOUS DELL & 7. e
Please answer part b: *** specialization point****
Please help me with part a, b and c.
15. Assuming Portugal has 180 man-hours (mhrs) of labor resource available for production, and labor is the only resource, the per unit resource cost of cloth in Portugal is ____ mhrs/yard. (Please do NOT reduce fractions to decimals.)
In production specialization of the factors is important. Explain how the factors are specialized giving examples. Discuss the barriers to specializations and policies that can be used to curb immobility of factors
Let suppose in the world there is two country, Country X and Country Y. In country X there is only one worker A while on country Y the worker is B. And both can produce sugar and wheat. But the country B is specialized in producing wheat and the other one in sugar. Suppose that the A and the B each work 40 hours a week and can devote this time to growing sugar, raising wheat, or a combination of the both. The person A can produce a pound of sugar in 10 hours and a pound of wheat in 20 hours. The B, who is more productive in both activities, can produce a pound of Sugar in 8 hours and a pound of meat in 1 hour. (a) Draw the Production Possibilities Frontiers for both workers? (b) Whose have absolute and comparative advantage? (c) Why they move toward trade? (d) Graphically shows the gain from trade.
Can labor specialization be a source of economies of scale (size) within a production plant? Why or why not? Can labor specialization be a source of diseconomies of scale (size)?
Note : The answer should be typed. double space with 12-point font. What is Specialization and what are the Pros and Cons of it. Give me examples of specialization