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Comparative Advantage And Absolute Advantage

Decent Essays

QUESTION 1-you have been employed as an economist to advice the department of health and the federal government about the following issue.the minister has argued that raising the tax on alcohol is the most effective way to reduce alcohol abuse in our society.do you agree or disagree?explain why or why not.
QUESTION 2-Explain the difference between comparative advantage and absolute advantage.
CLASS TIME- TUESDAY 9 TO 12
TUTOR NAME- MURAT BESNEK
NUMBER OF PAGES- 6

Q1. Introduction
 Alcohol is a intoxicating liquor which is taken by people and its reduce their thinking ability ,and disturbed perception also makes them to react quickly .Consumption of alcohol is a major problem in all our the world because its cause many chronic diseases like diabetes, cancer, kidney disease .
 Raising tax on alcohol is …show more content…

Difference between Comparative advantage and absolute advantage
Comparative advantage Absolute Advantage
1.Its refers to differences in opportunities
Cost . 1.Its refers to difference in productivity of nations .
2.This require a ability of a party to produce a particular good and services . 2. Its require the smaller quantity inputs to produce a good and services .
3.It is base on lower marginal and opportunity cost . 3.Its base on given product using less of a given resources than competing entity .
4.In this, countries drives specialize in the production of the goods . 4.In this ,productivity is compare with different producers or economics.
5.It is important but its determines what country will specialize in. 5.It is only important

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