select one. according to the theory of comparative advantage the most important benefit of trade is, a) trade surpluses b) increased exports c) more jobs d) a more efficient way allocation of resources

Q: Determine the opportunity cost for each nation. Determine what each nation has a comparative…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Explain how each of the alternative models of comparative advantage explains the Leontief Paradox

A: Product cycle model: Frequent modification is required in the production techniques at the stage…

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: nd rates Imperfect competition Imperfect operation Government may restri

A: Comparative advantage is to the ability of a country for production of particular goods or services…

Q: What is the law of comparative advantage, and why is it important in international trade?

A: International trade allows countries to expand their market through exchange of goods and services…

Q: The principal concept behind comparative advantage is that a nation should   maximize its volume of…

A: When a country sells its goods and services to other countries, then these goods and services are…

Q: Which of the following best represents the benefit of trade based on comparative advantage? (a)…

A: Trade around the world is considered one of the most important activities, which assists in the…

Q: Which of the following best characterizes the relationship between the parties to a trade and the…

A: Answer -  Before going into the realtionship we wil  first define the gains of trade and parties of…

Q: How does comparative advantage play a key role in specialization & trade ?

A: Comparative advantage refers to the ability of country to produce the goods and services lower…

Q: Which statement about free trade is MOST accurate? A. Free trade frequently leads to high rates of…

A: The policy of trade through which government does not tend to discriminate against imports or…

Q: While different natural resources and the theory of comparative advantage can explain many trade…

A: International trade refers to the exchange of goods and services between countries across the world.…

Q: Q) When a country has a comparative advantage in producing a certain good, A: the country should…

A: Absolute Advantage: The absolute advantage arises when a country produces more output from the given…

Q: which of the following statements are true? I) Two countries can achieve gains from trade even if…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: A country may specialize in the production of a good that it can produce at a lower opportunity cost…

A: Maldonia comparative advantage = Coffee Lamponia comparative advantage = Grain After specialisation…

Q: Countries have different endowments of factors of production which leads to the law of comparative…

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

Q: Please use the theory of comparative advantage to explain how international trade between two…

A: The comparative advantage refers to the advantage of production of goods and and service at a lower…

Q: Trade

A: Comparative advantage refers to a situation in which a country has more specialization in one good…

Q: The principle of comparative advantage helps explain trade between nations.  True  False

A: Principle of comparative advantage was given by David Ricardo and it builds on the Principle of…

Q: The law of comparative advantage in trade typically applies only to trade between nations and favors…

A: Comparative advantage is when one party can produce goods with lower opportunity cost. Now this…

Q: Evaluate the following statement: "Trade is like football: one team wins and the other team loses."…

A: Evaluate the following statement: "Trade is like football: one team wins and the other team loses.…

Q: Which goods will a nation typically import? a. those goods in which the nation has an absolute…

A: A country has a Comparative advantage when the opportunity cost (OC) of producing a good or service…

Q: Opportunity cost is an important factor in looking at comparative advantage. True False

A: Answer: Comparative advantage: a country has a comparative advantage in the production of a good…

Q: If one country can produce a good with fewer resources than another country, this is calleda.…

A: Specialization:- Specialization is a manufacturing approach in which an organization pay more…

Q: Explain why Japan exports automobiles, while the U.S. exports aircraft? Use the prior definitions of…

A: Absolute advantage refers to the ability to produce more goods using same resources or same quantity…

Q: Ghana imports and exports food from and to neighbouring Côte d'Ivoire. The latter nation is very…

A: Since Ghana and Côte d'Ivoire have similar environment, level of education and institutional…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: PR×QR=23M...............(1)PC×Qc=13M................(2)

Q: Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: Suppose a capital abundant country, such as Canada, enters into free trade with a natural resource…

A: An economic entity is said to possess a comparative advantage in the production of a good or service…

Q: Suppose there is a policy debate regarding the United States imposing trade restrictions on imported…

A: In economies, importing tariff is important for the betterment of domestic industry and national…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: When two countries involve in trade one country exports that good in which it has ‘comparative…

Q: Does intra-industry trade contradict the theory of comparative advantage?

A: Intra-industry trade refers to exchanging goods and services within the different branches and the…

Q: Which of the following best represents the benefit of trade based on comparative advantage? Large…

A: In economic theory, comparative advantage is one of the important concepts in the theory of…

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: Will a country import or export products for which it has a comparative advantage? Explain.

A: Comparative advantage means that a country is manufacturing more goods than its competitor at a…

Q: Which of the following statements is true? A country that has the absolute advantage in producing a…

A: Opportunity cost means what must be given up in order to get some other item. It is reflected in the…

Q: The only two countries in the world, Alpha and Omega, face the following production possibilities…

A:

Q: Ghana imports and exports food from and to neighbouring Côte d'Ivoire. The latter nation is very…

A: Dear student,  You have asked multiple questions (3 questions). I am going to answer the first…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: The principle of absolute advantage states the ability of a party for production of a service or…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: Under autarky, a country does not indulge in trade and has to be self-sufficient. The Home country…

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…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.