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

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: Difference of Heckscher Ohlin Theorem from Comparative advantage theory?

A: International trade is the movement of money, products, and services through international borders…

Q: Which of the following statements is NOT true? Group of answer choices   In a two-good market, a…

A: If the domestic price of a good is less than the world price of the good then a nation is going to…

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: Assume that you have been hired by an International Organization to be consulted on various issues…

A: Trade: Exchange is characterized as the overall commercial centre of purchasing and selling…

Q: Which of the following statements is correct? Two countries cannot gain from specialization and…

A: True statement is “two countries cannot gain from specialization and trade if they have identical…

Q: Trade between nations can be mutually beneficial if one country has  a monopoly. an absolute…

A: When two countries are involved in an international trade there are always gains from trade.

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: When two countries are specialising and trading with each other, the gains from trade will tend to…

A: In the international market, specialization in the production of specfic good or services is implied…

Q: Which of the assumptions of comparative advantage seem unrealistic? Fixed technology and imperfect…

A: Trade is defined as the exchange of commodities and services across the boundary of the country.

Q: Which of the following statements is not correct?   Trade allows for specialization.…

A: For trade to be occur minimum two parties are required.

Q: What theory attempts to explain why Japan is strong in automobiles, Switzerland in precision…

A: International trade occurs where the goods and services flow across the countries.

Q: The existence of absolute advantage Multiple Choice implies that there will be no benefits from…

A: Absolute advantage and comparative advantage are two different economic terms used in international…

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

A: The law of comparative advantage states that in a situation of free trade, an individual or a…

Q: Question 3: Economies of Scale, Imperfect Competition and International Trade Trade need not be…

A: While dealing or exchanging in international trade, both participants try to benefit from the…

Q: If a scale economy is the dominant technological factor defining or establishing comparative…

A: The answer is as follows:-

Q: Question 15 Which of the following statements is correct? Two countries can gain from specialization…

A: Option A is correct.  Option D is incorrect as gains from trade is based on comparative advantage…

Q: Which of the following is true about trade? The basis for trade is absolute advantage Trade results…

A: International trade refers to the exchange of capital, products, and services across international…

Q: absolute advantage in the production of all goods. is True or False

A: A country have an absolute advantage (AA) in the production (manufacture) of a good if it can…

Q: Australia has an absolute advantage over South Africa in wool production if, during a year,…

A: Absolute advantage arises when the country can produce more of a good or service with same resources…

Q: Question 18 Which of the following statements is correct? The gains from specialization and trade…

A: Option D is correct.  Option A is incorrect as gains from trade is based on comparative advantage…

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: What is the relationship between production costs and comparative advantage? Comparative advantage…

A: "When the world price of a commodity is less than the domestic price of a good, a country becomes an…

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

A: When an economy opens up its trade boundaries to make exchanges with other countries, it uses…

Q: Gains from trade come from: Excessive negotiations. Specializing in one’s comparative advantage.…

A: The emergence of globalization allowed countries to trade with each other. The countries exchange…

Q: Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the…

A: A county has comparative advantage in the production goods and services if it has lower opportunity…

Q: If an economy has the absolute advantage in the production of all goods over another economy, then…

A: Absolute advantage refers to the fact when one nation can produce more of a particular good as…

Q: Two countries are willing to trade and they have the following information: Country A produces 1000…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Question 27 .  If Maxine and Daisy both specialized in the product in which they have a comparative…

A: Given : Maxine & Daisy are bakers who bake tarts and pies. They have similar level of resources…

Q: The desire for profit can end up pushing countries toward producing goods in which they have a…

A: If there is comparative advantage for a particular good in a particular country,there would be more…

Q: International trade Multiple Choice benefits consumers but harms producers. can only take place if a…

A: Comparative advantage is the situation when one country can produce the good at a lower opportunity…

Q: a) sen What is:  (not more than 3 sentences for each of them) Absolute advantage? Comparative…

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

Q: Differentiate between the following terms. Absolute advantage and comparative advantage.

A: Differentiate between the following terms. Absolute advantage and comparative advantage. The…

Q: The primary benefit that results when a nation employs its resources in accordance with the…

A: The absolute advantage of a country is the ability to produce commodities in large quantities than…

Q: Compare and contrast absolute advantage and comparative advantage

A: Absolute advantage is the ability of a party (person, company or country) can produce large quantity…

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: Comparative advantage does not address   Question 10 options:   whether specialization and trade…

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

Q: Classify the below statements as positive or normative statements: • Canada and Japan account for…

A: Normative economics and Positive economics are two standard parts of present-day financial matters.…

Q: The following statement is true about comparative advantage. The principle was developed by the…

A: The opportunity cost is the cost of decreasing one commodity unit by sacrificing it and increasing…

Q: Which trade advantage is used more commonly among economists? absolute advantage comparative…

A: Trade advantages are key to get involved in the international trade. The trade advantages are…

Q: According to the concept of comparative advantage, a good should be produced in that nation where:…

A: When a participant could generate anything at a cheaper price than someone else individual has a…

Comparative Advantage and Absolute Advantage Analysis

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