What does Brazil have an absolute advantage in?
Brazil has an absolute advantage in Coffee, Soyabeans and
footwear. This indicates that Brazil is labour intensive.
Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in Table 3. Then Brazil has a: Table 1. Productivity of Brazil and Australia Output per worker Australia Brazil Sleds Clarinets 300 2 200 Select one: O a. Comparative advantage in sleds o b. Absolute advantage in clarinets c. Comparative advantage in clarinets d. Absolute advantage in sleds
What does the term "absolute advantage" mean? What is the “principle of comparative advantage”? Explain why the principle of comparative advantage is relevant to international trade policy. Is everyone better off when trading is allowed?
(a) Does either country have an absolute advantage in the
production of wheat or beef? Explain. (b) What is the opportunity
cost of wheat in each country? (c) What is the opportunity cost of
beef in each country (d) Analyze the comparative advantage and
opportunities for trade between the US and Argentina.
8. Use the information in the table below to answer the following questions U.S. Argentina Wheat 50200 Beef 200 ADD
Does Brazil have a city that is an important financial center? Does Brazil have its own stock market(s)? How did the stock market(s) perform in Brazil last year (2018)?
The following are correct statements about Comparative and Absolute Advantage, EXCEPT: a) Absolute Advantage means being able to produce more with the same economic resources. b) Comparative Advantage means being able to produce with the lowest opportunity cost. c) Absolute Advantage does not imply Comparative Advantage. d) Efficiency and Optimality can be attained if we specialize and trade according to our Absolute Advantages. (The answer is not C)
1. Absolute advantage and comparative advantage A AaB Suppose you have the following information on the marginal product of labor in rice production and apparel production in Japan and Thailand: Marginal Product of Labor Thailand Rice (bushels per hour) Apparel (units per hour) Complete the following table by computing opportunity costs of each good in terms of units of another good for both countries: Japan Thailand Opportunity cost of rice (units of apparel per bushel) Opportunity cost of apparel (bushels...
•Give an example of when you have an absolute but not a comparative advantage.
Explain how absolute advantage differs from comparative advantage. (4 marks)
What are comparative and absolute advantage? Why is comparative advantage, in your opinion, relevant for international trade?
(a) In which product does country H have the absolute advantage
over country F? According
to Smith’s theory, which product should country H export? In
which product does
country H have the comparative advantage over country F?
According to Ricardo’s theory,
which product should country H export?
(b) Specify the production possibility curve (PPC) in country H.
Calculate the production
and consumption allocation of country H in the no-trade case.
Take fruits as the unit of account.
How much is...