Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why?

Q: Suppose the following table shows the number of labor hours needed to produce airplanes and…

A: The ability of an economy for producing at a lower opportunity cost a particular good or service as…

Q: How are a nation’s production possibilities affected by specialization and trade based on the law of…

A: Law of comparative advantage means a country should produce and export the good in which the…

Q: when romania opened itself to international trade, the price of corn in romania almost doubled.…

A: Theory of Comparative Advantage -:…

Q: 10) PPFS for Countries X and Y 300 Y 200 400 tons of rice a). In the graph above, what is the…

A: Comparative advantage, when country can produce a good with least opportunity cost than than others.

Q: Suppose that Portugal and Sweden both produce rye and wine. Portugal's opportunity cost of producing…

A: According to comparative advantage theory, a country is said to have a comparative advantage in the…

Q: United States Hamburgers (in tons) Mexico Hamburgers (in tons) Tacos (in tons) 180 120 60 Tacos (in…

A: Comparative advantage is an economy's ability to produce a particular good or service at a lower…

Q: Suppose that Portugal and Switzerland both produce beer and stained glass. Portugal's opportunity…

A: The countries involve in trade. Trade is very beneficial for all countries. It improves the market.…

Q: Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia,…

A: Absolute advantage refers to the ability of a country to produce goods more efficiently or more…

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: 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: The following table shows the total production that can be produced by two countries at 100 workers.…

A: Absolute advantage, when a country can produce more of a good than others using the same amount of…

Q: Jimmy and Robert are stranded on a deserted island.  Robert can catch 10 fish in a day or pick 15…

A: Comparative advantage refers to the production of a good with the least opportunity relative to…

Q: Points on Production Possibilities Frontier Canada   China   Wheat   Computers   Wheat…

A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…

Q: country, X has a comparative advantage in producing game console. Suppose recently, the Education…

A: Answer: Introduction: Comparative advantage: If a country has the least opportunity cost of…

Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Suppose that Portugal and Switzerland both produce jeans and stained glass. Portugal's opportunity…

A: Given information: There are two countries, i.e., Portugal and Switzerland They produce two goods,…

Q: c) Who has an absolute advantage in the refuelling the car and replacing a tire? Based from the…

A: Refuel (R) Tire Change (T) B1 4 sec ( 1 R costs 2 T) 2 sec (1 T costs 0.5 R) B2 6 Sec (1 R…

Q: Suppose that Portugal and Austria both produce fish and wine. Portugal's opportunity cost of…

A: If any country have low opportunity cost so it have good comparative advantage so we can answer the…

Q: Suppose that Portugal and Sweden both produce fish and olives. Portugal's opportunity cost of…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons…

A: The trade pattern is decided by the comparative advantage. A country that does not have absolute…

Q: Use the following data to explain the difference between absolute advantage (SMITH) and comparative…

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

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: Suppose that France and Austria both produce jeans and wine. France's opportunity cost of producing…

A: Opportunity cost is the measure of potential increase a financial backer passes up when they focus…

Q: Consider a simple economy consisting of two countries, England and France. England has 25 workers…

A: Since you have asked multi-subparts question, as per answering guideline, we are supposed to solve…

Q: Suppose that Italy and Switzerland both produce jeans and olives. Italy's opportunity cost of…

A: Comparative advantage is a theory about the ability of a nation to produce a good or service at a…

Q: Use the following information for the next two questions: the U.S. can produce 4 tons of potatoes…

A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…

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: Suppose that Spain and Switzerland both produce oil and cheese. Spain's opportunity cost of…

A: a) Spain has a comparative advantage in the production of cheese and Switzerland has a comparative…

Q: Suppose that Portugal and Germany both produce rye and shoes. Portugal's opportunity cost of…

A: a) The opportunity cost of producing a pair of shoes is lower for Portugal and higher for Germany.…

Q: 2 plates of pasta 9.) Suppose that Bob still has 10 hours and can produce 10 hamburgers in 1 hour in…

A: Given: Number of hours=10 Bob: 10 hamburgers or 2 plates of pasta Jimmy: 4 hamburgers or 1 plate of…

Q: Using the data presented in the table below answer the followings: a) which country has comparative…

A: "If a country has a comparative advantage in producing one commodity then it means that country can…

Q: QUESTION 7 Use the information in the table below to answer the 3 parts  Production per unit of…

A: Absolute advantage: When a country produce a output in greater quantity with the same input used or…

Q: 5. Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazilian…

A: An absolute advantage in the production of a good or service is secured when an individual or…

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: The United States and Canada both produce cars and beer. The table below shows the production…

A: Comparative advantage occurs when a country or an individual can produce the good at a lower…

Q: A) Which producer has the comparative advantage in producing puzzles? Geppetto or Lewis B) Which…

A: An economic agent is said to have a comparative advantage in the production of a good or service if…

Q: Finally, Canada and Australia are both English-speaking countries with not-too dissimilar population…

A: Suppose there are two nations (A and B) which are producing two goods (X and Y). And they both…

Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazillian…

A: The international trade can be beneficial if the theories support the requirements by a country. The…

Q: Eggs Eggs 40 Johnny Frankie 30 20 10 RF 10 15 Milk 20 40 Milk Without specialization, Johnny…

A: When two individuals, firms, or countries make an exchange of goods and services using their…

Q: Based on your answer to the last question, which of the following prices of trade (that is, price of…

A: Answer in step 2.

Q: "he following table summarizes the combinations of goods X and Y that two individuals, Nicki and…

A: Since you have posted muti-subparts question, so as per answering guidelines,we will solve first…

Q: Suppose that Cuba and Montserrat, two Carribian island economies start trading with each other.…

A: Cuba doesn't have absolute advantage in either mangoes or sugarcane as unit labor requirements are…

Q: Suppose that France and Denmark both produce fish and olives. France's opportunity cost of producing…

A: (1). France has a comparative advantage in the production of olives and Denmark has a comparative…

Q: The United States and Canada both produce cars and beer. The table below shows the production…

A:

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.