Suppose you are a CEO in a big corporation, you manage challenging operations and you have to make daily critical decisions but you can also type faster than your secretary. You have an absolute advantage in ………………. You have a comparative advantage in …
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Suppose you are a CEO in a big corporation, you manage challenging operations and you have to make daily critical decisions but you can also type faster than your secretary.
You have an absolute advantage in ……………….
You have a
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- The two countries decide to trade with each other, which allows them to be able to specialize in the good in which they have a comparative advantage. , Derryland should specialize in the production of Group of answer choices cheese and Whetonia should specialize in the production of bread. bread and Whetonia should specialize in the production of cheese. both goods and Whetonia should specialize in the production of neither good. neither good and Whetonia should specialize in the production of both goods.The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage, Group of answer choices only the production of both goods will increase. the production and consumption of both goods will increase. only the consumption of both goods will increase. only the production of wheat will increase.Consider a hypothetical world with two countries: Country A and Country B. Each country has 45 workers, who produce cars and bicycles. If Country A shifts all its workers to one good, it can produce 1,350 cars or 2,520 bicycles. Under the same conditions, Country B can produce 1,710 cars or 2,880 bicycles. Therefore, Country B has an absolute advantage in producing both goods. Nevertheless, the two countries decide to trade, so each shift production to their areas of comparative advantage. Determine which good Country A will specialize in. Then, calculate the quantity of this good the country will produce after trade if only 40 workers are involved. If necessary, round any intermediate calculations to two decimal places and your final answer to the nearest whole number.
- The table from the image provided shows the ability of two countries to produce TVs and chairs in a given time period. What can be concluded from the information?  (Pick either a,b,c, or d) a) Country X has an absolute advantage in TVs and country Y has an absolute advantage in chairs b) Country X has a comparative advantage in TVs and country Y has an absolute advantage in chairs c) Country X has a comparative advantage in chairs and country Y has an absolute advantage in TVs d) Country X has an absolute advantage in TVs and country Y has a comparative advantage in chairsBetween two, the producer that requires a smaller quantity of inputs to produce a good Has an absolute advantage in the production of that good Must produce and not trade at all Has a comparative advantage in the production of that good Should not produce that good Should import that goodTrue or False. Both Countries would be better off if they produced the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars.
- Q)Suppose that country A using one unit of labor can produce 80 pounds of apples or 20 pounds of oranges, while country B using the same unit of labor can produce 40 pounds of apples or 15 pounds of oranges. This shows that: Group of answer choices If A and B trade, A should specialize in the production of oranges. B has an absolute advantage in the production of apples. B has a comparative advantage in the production of apples. B has a comparative advantage in the production of oranges.Suppose that there are two countries, the North and the South. Given the North's resources, it can produce 4 Cars in an hour or 1 unit of wheat in an hour. Given the South's resources, it can produce 1 car per hour or 4 units of wheat in an hour. Both countries have forty hours in total to produce wheat and cars. Finally, the goal of each country is to have the most possible cars and wheat, but also to always have an equal amount of each. In other words, 10 cars and 10 wheat is just as valuable as 11 cars and 10 units of wheat, or 10 cars and 11 units of wheat, but 11 cars and 11 wheat would make the country even better off. The question below relates to the PPF for the North and the South. While you do not need to turn in a graph of the PPF, they may be helpful to answer these questions. Finally, the first set of questions refers to a world where the North and South cannot trade, while the second set of questions refers to a world where they can trade. In the latter set of…When countries specialize based on their comparative advantage and trade with each other, how does it lead to gains from trade for both countries (even if one country has an absolute advantage in both goods)?
- True or False: According to the theory of comparative advantage in international trade, even if one country is less efficient in the production of all goods compared to another country, both countries can still benefit from trade by specializing in the production of the goods in which they have a comparative advantage, leading to overall gains in efficiency and economic welfare.Kelly and David are both capable of repairing cars and cooking meals. Which of the following scenarios is not possible? Kelly has a comparative advantage in repairing cars and David has a comparative advantage in cooking meals. Kelly has an absolute advantage in repairing cars and David has an absolute advantage in cooking meals. Kelly has a comparative advantage in repairing cars and in cooking meals. David has an absolute advantage in repairing cars and in cooking meals.Your roommate is a better cook than you are, but you can clean more quickly than your roommate can. If your roommate did all of the cooking and you did all of the cleaning, would your chores take you more or less time than if you divided each task evenly? Give a similar example of how specialization and trade can make two countries both better off.
