Why is it important that the country or region with the lower opportunity cost produce the good? How would you use the concept of comparative advantage to argue for reducing restrictions on trade between countries?

Q: What is free trade and what are the benefits of free trade as suggested by the principle of…

A: FREE TRADE Free trade is, in the simplest terms, the total absence of government policies which…

Q: How is comparative advantage related to early American production?

A: A country has a comparative advantage at producing something if the country can produce it at lower…

Q: Andreas can knit 1 scarves per hour and 4 hats per hour. Katya can knit 9 scarves per hour and 2…

A: Absolute cost advantage: - it is a principle of international trade given by Adam Smith which shows…

Q: Two countries (Home and Foreign) use labor to produce two goods: Cloth and Wheat. The number of…

A: a) aLc, aLw, aLc*, aLw* are the unit labor required for the production of respective goods in home…

Q: What is the theory of comparative advantage?

A: The theory of absolute advantage was developed by Adam Smith. However, after Adam Smith developed…

Q: Give an example in which one person has an absoluteadvantage in doing something but another…

A: ANS Let us assume two individuals A and B manufacturing two goods X & Y each. Let us also assume…

Q: What is the difference between absolute advantage and comparative advantage in decisions to trade…

A: Absolute advantage trade theory was introduced by Adam smith while comparative advantage theory was…

Q: What is Comparative Advantage and how is it determined? Explain this concept in words.

A: Theory of comparative advantage in international trade helps trading countries in specialization and…

Q: Explain the concept of comparative advantage and how it is related to the benefit that nations…

A: The law of comparative advantage was developed in 1817 by David Ricardo to explain why countries…

Q: What distinguishes comparative advantage from absolute advantage in production?

A: Production refers to conversion of raw material into finished goods.

Q: Where does economic equivalence exist?

A: The concept of equivalence is the stage of being equal or the trend of being compatible etc.…

Q: Why is comparative advantage important in determining trade instead of absolute advantage?

A: The absolute advantage is when a country can produce higher number of goods and services than other…

Q: How is the theory of absolute advantage similar to that of comparative advantage? How is it…

A: The theories of comparative and absolute advantage are studied under international economics. The…

Q: Use the theory of comparative advantage to explain how international trade between two countries…

A: International trade takes place when countries across the globe engage with each other and exchange…

Q: Q9 In the 18th century, _____ was the first to formulate the principle of comparative advantage. a.…

A: The concept of Comparative advantage was firstly introduced by the British political economist David…

Q: When countries specialize based on their comparative advantage and trade with each other, how does…

A: Gains of trade happens when countries trade with one another and trade on goods which they…

Q: During the summer you have made the decision to attend summer school, which prevents you from…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Georgia is pondering whether adding one additional painting to her art installation will make the…

A: Answer: option d (net marginal benefit) Explanation: Since Georgia is pondering about the marginal…

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

A: The measure that depicts the exchange of goods and services among entities or countries in lieu of…

Q: Two countries (Home and Foreign) use labor to produce two goods: Cloth and Wheat. The number of…

A: The potential gains that an individual, investor, or organization misses out on when choosing one…

Q: Compare and explain absolute and comparative advantage by giving examples

A: A country or organization is said to have an absolute advantage, it requires fewer assets—by and…

Q: Distinguish between absolute advantage and comparative advantage

A: Absolute advantage Comparative advantage When the country is able to produce a good at a lower…

Q: When can two countries gain from trading two goods?   when the first country can only produce the…

A: Some of the theories of trade are absolute advantage, comparative advantage theories on the basis of…

Q: What is comparative advantage based on?    A. dollar price  B. labour costs  C. opportunity costs…

A: When a country produces a good or service at a lower opportunity cost than its trading partners, it…

Q: What is comparative advantage?

A: While trading internationally, countries generally gain when they specialize in one product and…

Q: Interdependence and the Gains from 'Trade I. The Principle of Comparative Advantage (what is the…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Suppose the figure shown represents the production possibilities frontier for Country A. Country B…

A: Production possibility frontier shows all the combinations of those two goods that an economy can…

Q: Explain the difference between absolute advantage and comparative advantage. Which is more important…

A: Opportunity cost is the decrease in number of units of one good to produce more of other good.

Q: The term "figure skating" refers to the shapes that skaters used to trace in the ice as part of…

A: Figure skating: The figure skating used by athletics earlier, there are many changes that happened…

Q: In what ways has free trade helped the economy? In what ways has free trade hurt the economy?

A: Trade takes place between countries. In trade there is export and import of goods and services…

Q: What is absolute advantage? What is comparative advantage? Under what conditions does comparative…

A: Foreign trade is the movement of money, products and services through country boundaries or…

Q: Interdependence and the Gains from Trade I. The Principle of Comparative Advantage (what is the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The opportunity cost of moving from point E to point B in the picture is what ?

A: The principle of comparative advantage is developed by David Ricardo and according to this concept,…

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: Give an example in which one person has anabsolute advantage in doing something butanother person…

A: Answer: Absolute advantage: If a person is able to produce more goods using the same amount of…

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: What is economics all about? What is supply and demand? What is exchanges rates?

A: Economics is a social science concerned with the behavior of consumers, producers and various…

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…