Why does Japan specialise in computer production and Korea specialise in apple production?

Q: Bahrain and Bhutan each have 10,000 hours of labor per month. In Bahrain,producing one pound coffee…

A: International trade refers to the import and export of goods and services among different countries…

Q: Suppose that each country completely specializes in the production of the good in which it has a…

A: The economic theory proposes that, if nations apply the standard of comparative advantage, the…

Q: Assume that country A can use its resources to produce 320 computers or 320,000 books, while country…

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

Q: Suppose that Spain and Germany both produce oil and shoes. Spain's opportunity cost of producing a…

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

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

A: Since Spain has to sacrifice only 3 barrels of oil to produce a pair of shoes in comparison to 11…

Q: The Table below shows the amount of labor hours needed to produce cars and airplanes by Japan and…

A: In the international market, absolute advantage is the situation when a country has the ability to…

Q: Maldonia has a comparative advantage in the production of while Desonia has a comparative advantage…

A: Comparative advantage refers to the ability of a person or country to produce goods or services at a…

Q: Answer the question on the basis of the accompanying production possibilities tables for two…

A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…

Q: Brazil Mexico Soya per unit of labor 0.05 0.02 Corn per unit of labor 1.25 1.40 Which…

A: Answer: Given:

Q: The country of "Econoland" can use its resources to produce either 500 tons of crab or 200 tons of…

A: Here, Two countries are given as Econoland and Arcadonia, which are producing two goods as crab and…

Q: has an absolute advantage in the production of corn, and has an absolute advantage in the production…

A: The production possibility frontier(PPF) is the combination of goods that be produced at the maximum…

Q: Suppose that Greece and Sweden both produce oil and cheese. Greece's opportunity cost of producing a…

A: It is given that Greece’s opportunity cost of producing a pound of cheese is 4 barrels of oil and…

Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…

A: US can produce maximum 81 tons of tacos or maximum 90 tons of hamburgers. Mexico can produce maximum…

Q: Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to…

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

Q: mya and Donovan produce two goods in an 8 hour day. Mya can produce 10 capital or 55 consumables and…

A: An individual can have an absolute advantage over another individual in the manufacturing of a…

Q: Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural…

A: The nations around the globe are involved in the trading activities with each other. The nations…

Q: Q3. In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals…

A: In the international market, a country can have an absolute advantage in the manufacturing of a…

Q: Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in…

A: To understand the decline in output, let us understand the backdrop of the situation before the…

Q: In Country T, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of…

A: It might be argued that if countries used the concept of comparative advantage to choose what…

Q: Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to…

A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

Q: Suppose that Canada can produce 100,000 hockey sticks or 10,000 gallons of maple syrup in a typical…

A: The businesses, and producers are considered to be the suppliers who makes up the supply side of the…

Q: Raphael and Susan are farmers. Each one owns a 20-acre plot of land. The following table shows the…

A: Comparative advantage refers to the ability of the country or an individual to produce the good at a…

Q: Taylor and Bobby are auto mechanics. Taylor takes 12 hours to replace an engine and 4 hours to…

A: Absolute advantage is when a person is able to produce more number of goods with same inputs.  In…

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: Arcadia's opportunity cost of producing 1 bushel of corn is of jeans, and Dolorium's opportunity…

A: Country Corn Jeans Arcadia 5 10 Datorium 4 16

Q: What is one possible price of capital-intensive goods (in terms of labor-intensive goods) that would…

A: In country A,  1 ton of capital-intensive goods  =200/200 =  1 ton of labor intensive good In…

Q: Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…

A: ANS Peru can produce 7523 units of food or 17853 fuel using 8000 labor. Therefore in Peru each labor…

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: France Terms of trade Sweden Suppose that France and Sweden both produce fish and wine. France's…

A: An economy is said to be in a state of comparative advantage when the opportunity cost of producing…

Q: Assume a world of two nations USA and The two nations produce machinery and agriculture. The USA can…

A: The international trade refers to the phenomenon in which the entities around the world, such as the…

Q: Assume that an American worker can produce 5 cars per year or 10 tons of grain per year, whereas a…

A: 1. The absolute advantage is the ability of a country to produce more quantity of output than the…

Q: Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural…

A: Brazil is capital abundant Chile is natural resource-abundant Timber is natural resource-intensive…

Q: France can produce either 50 units or 80 units of wine per labour hour. Canada can produce either 87…

A:

Q: Columbia and France each have 10,000 hours of labor per month. In France, producing one pound coffee…

A: 1. Comparative advantage: When a country has lower opportunity cost of producing a commodity than…

Q: Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two…

A: The comparative advantage theory states that a country produces the good at a lower opportunity cost…

Q: Argentina has 100 million tons of soybeans and 80 million tons of wheat, Bolivia has 120 million…

A: Absolute advantage refers to ability of a person of country to produce larger amount of the good…

Q: Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person…

A: Absolute advantage indicates the ability of an economy to produce a good more efficiently with the…

Q: Suppose that Greece and Sweden both produce fish and shoes. Greece's opportunity cost of producing a…

A: Comparative advantage is when a country is able to produce at a lower opportunity cost.

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

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

Q: The U.S. and Canada both produce aircraft engines and tons of chemicals, which are sold for the same…

A: Absolute advantage in teade theory means producing more quantity that the other entity with the same…

Q: Assume England and Chad can both produce grain and dates, and that the only limited resource is the…

A: Absolute advantage: when a country has more marginal productivity than other country. Comparative…

Q: _________has absolute advantage in the production of paper. ________ has comparative advantage in…

A: In 12 labour hours Nigeria can produce either 3 boxes of paper or 24 pens. At the same 12 labour…

Comparative Advantage and Absolute Advantage Analysis

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