Question
Asked Jan 17, 2020
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a)Identify an example of absolute advantage relative to the United States from your data tables. Be sure to identify which country has absolute advantage (U.S. or other), the product, and data to support your claim. Tip: When considering absolute and comparative advantage, worker hours to produce one unit is a reflection of productivity.

b)Identify an example of comparative advantage relative to the United States from your data tables. Be sure to identify which country has comparative advantage (U.S. or other), the product, and data to support your claim.

c) Explain why most trade occurs because of comparative advantage. Be sure to provide examples from the data tables or from the lesson to support your answer.

Country B
Developing
Country C
Developed
Country D
Developed
Country A
Developing
Country
United States
CORN
2
4
(Worker hours to produce one unit)
4
10
CITRUS
10
6.
(Worker hours to produce one unit)
APPAREL
4
(Worker hours to produce one unit)
4
12
4
COMPUTER SOFTWARE
8
(Worker hours to produce one unit)
2.
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Country B Developing Country C Developed Country D Developed Country A Developing Country United States CORN 2 4 (Worker hours to produce one unit) 4 10 CITRUS 10 6. (Worker hours to produce one unit) APPAREL 4 (Worker hours to produce one unit) 4 12 4 COMPUTER SOFTWARE 8 (Worker hours to produce one unit) 2.

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Expert Answer

Step 1

(a)

 

The U.S take a shorter time to produce the products like corn, citrus, apparel, and computer software than the time taken by other countries. If a country produces one good with a less cost and requirements than the other countries is known as the absolute advantage. In this case the production process of U.S is much better than the other countries, which mean that U.S have absolute advantage ion production.

 

Step 2

(b)

 

In the production of corn, citrus, apparel, and computer software, both U.S and developed country have comparative advantage...

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