The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food. Concept Introduction Absolute advantage : It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service. Comparative advantage : It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Question

19 Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________. a. Domestic product b. Factor income from abroad c. Price level d. Domestic Output

Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 1.2PA

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

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19 Earnings such as wages, interests and dividends by residents who are living in other countries are called _____________. a. Domestic product b. Factor income from abroad c. Price level d. Domestic Output

19. _______________ topics relate to how much money the country makes in a year, how many resources a country imports and exports in a year, and the number of available jobs in the U.S. at a given time.

7. Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States is still considerably more productive in the service sector. But most services are nontraded. Some analysts have argued that this poses a problem for the United States,because our comparative advantage lies in things we cannot sell on world markets.What is wrong with this argument?

Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 1.2PA

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Expert Solution & Answer

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Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 1.2PA

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Expert Solution & Answer

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See solution

Check out sample textbook solution

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 1.2PA

To determine