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

Q: One region has an absolute advantage over another region in the production of good X when... a. The…

A: The opportunity cost of one unit of X is lower in the first region than in the second region. This…

Q: The principle of comparative advantage does not provide answers to certain questions. One of those…

A: Comparative advantage tells answers about opportunity cost, specialization, and benefits from the…

Q: Explain why it is possible for a country to have an absolute advantage in all goods, and yet it is…

A: The absolute advantage is the ability of an economy to produce commodities more efficiently than its…

Q: How do comparative advantage and absolute advantage differ? Absolute advantage means more can be…

A: International trade is the exchange of commodities and services among countries throughout the…

Q: The United States exports corn and aircraft to the rest of the world, and it imports oil and…

A: The comparative advantage refers to when the country exports goods in which its opportunity cost of…

Q: What is the theory of comparative advantage?

A: The theory of absolute advantage was developed by Adam Smith. However, after Adam Smith developed…

Q: Using the information provided in the table below, answer the following questions.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Is absolute advantage or comparative advantagemore important for trade? Explain your reasoningusing…

A: Meaning of Trade/International Trade: International trade or trade refers to the exchange of…

Q: Question 1: Using the same amount of time and resources. Sara can either write 100 lines of code or…

A: The comparative advantage delineates the benefits that an individual enjoys when he/she can make a…

Q: LeBron James is extremely tall and athletic and, therefore, can clean his house faster than any…

A: As the question states that being very tall and athletic, he can clean his own house faster but when…

Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…

A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…

Q: What distinguishes comparative advantage from absolute advantage in production?

A: Production refers to conversion of raw material into finished goods.

Q: What is comparative advantage?  Give an example.  Why does it make sense for economies to specialize…

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

Q: Comparative advantage is an important concept to explain how economies work. Because of comparative…

A: ▪︎A comparative advantage happens whenever a nation can create merchandise at lower opportunity cost…

Q: Why is comparative advantage important in determining trade instead of absolute advantage?

A: The absolute advantage is when a country can produce higher number of goods and services than other…

Q: How is the theory of absolute advantage similar to that of comparative advantage? How is it…

A: The theories of comparative and absolute advantage are studied under international economics. The…

Q: Q9 In the 18th century, _____ was the first to formulate the principle of comparative advantage. a.…

A: The concept of Comparative advantage was firstly introduced by the British political economist David…

Q: Suppose that an hour of work in Germany can produce 5 pastries or 4 sausages. In Denmark, an hour of…

A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…

Q: comparative or absolute advantage

A: Absolute advantage depicts that ability of a firm, or a country to produce goods in absolute numbers…

Q: What is the relationship between production costs and comparative advantage?   Group of answer…

A: The involvement in more open international trade is always beneficial for an economy because it…

Q: Suppose that a tailor in Cottonland can sew either 40 cotton shirts or 10 silk shirts per week, and…

A: 2.1. Given: A tailor in Cottonland can sew 40 cotton shirts while a tailor in Silkland can sew 18…

Q: What is Production Efficiency and Inefficiency in economics? Explain with the help of a diagram.…

A: A PPF or production possibilities frontier is a graphical representation of the production of…

Q: Compare and explain absolute and comparative advantage by giving examples

A: A country or organization is said to have an absolute advantage, it requires fewer assets—by and…

Q: Distinguish between absolute advantage and comparative advantage

A: Absolute advantage Comparative advantage When the country is able to produce a good at a lower…

Q: What is comparative advantage based on?    A. dollar price  B. labour costs  C. opportunity costs…

A: When a country produces a good or service at a lower opportunity cost than its trading partners, it…

Q: There are two countries: Country A and Country B. These countries have the same amount of resources…

A: Comparative Advantage occurs when a country produce the good efficiently and relatively at a lower…

Q: Use the graph to answer the following question: Plant R and Plant S both produce radios and…

A: Opportunity Cost = What one Sacrifices / What one Gains Lower Opportunity Cost to produce a good…

Q: Chairs Sofas Unskilled Workers 6 4 Skilled Workers 10 6 The first column in the above table above…

A: The opportunity cost refers to the cost of the next best alternative foregone. A country is said to…

Q: Calculating the comparative advantage. Which of the two countries have absolute advantage, and…

A: International trade: - it means the buying and selling of goods and services with other countries.

Q: According to the Absolute and Comparative Advantage, which option is correct? the country with…

A: The ability of a nation to create goods and services at a lower opportunity cost rate than other…

Q: Analyze the following two countries with linear (constant opportunity cost) production functions.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Q1) Identify and categories the FIVE limitations to the theory of comparative advantage.

A: Comparative advantage theory was given my famous economist David Ricardo.

Q: Molly is Person A; John is person B 2 people from the same house do two things: they give rides and…

A: From the given information, in an hour Molly can provide atmost 4 taxi rides, while John can provide…

Q: Assume that each person produces their his/her own food as per the table below. Each person can work…

A: The term “Absolute advantage” in international trade theory measures the ability of a person, firm,…

Q: Imagine that Beth is the best florist in the world and the best pianist in the world. But can earn…

A: Absolute advantage is the capacity to produce an expanded number of goods and services at preferable…

Q: Suppose you have a team of two workers: one is a baker and one is a chef. Your baker is talented but…

A: The measure that depicts the exchange of goods and services among countries or entities in lieu of…

Q: Give three examples of trade in servieces and explain how comparative advantage may play a role in…

A: Trade in services: It generally refers to Sale and Purchase of all the Non material or intangible…