Homework Answers
Answer: False
It should not be higher but lower. Comparative advantage is the comparison between the two persons, of which one person is producing the good at lower opportunity cost than other. Opportunity cost is the best benefit foregone since an alternative course of action is chosen.
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For a person to have a comparative advantage in producing a product, he must be able...
Question 9 If a country has a comparative advantage in producing fish, then they must also...
Question 9 If a country has a comparative advantage in producing fish, then they must also have an absolute advantage in producing fish. True or False Question 11 If John can produce a good in less time than Fred then he has an absolute advantage in producing that good. True or False Question 12 Latasha can read 30 pages of economics in an hour. She can also read 20 pages of sociology in an hour. She spends 4 hours per...
CONTEXT INFORMATION: Comparative Advantage: As put forward by Ricardo, deals with whether an economic unit (person,...
CONTEXT INFORMATION: Comparative Advantage: As put forward by Ricardo, deals with whether an economic unit (person, region or nation) has an advantage in producing a particular good compared to the other goods that can be produced and compared to the trading opportunities that may be available * Comparative advantage is when a company can produce goods at a lower opportunity cost than its competitors. Competitive Advantage: "The effort of two or more parties acting independently to secure the business of...
We have talked quite a lot about comparative advantage and the benefits of free trade in this cla...
We have talked quite a lot about comparative advantage and the benefits of free trade in this class. By focusing on producing what you produce at a lower opportunity cost in comparison to others and trading for things where you have a higher opportunity cost of producing, you can have access to more goods and services than if you tried to produce them all yourself. Another way to think about it is that by putting resources into their best use...
4. Specialization and trade When a country has a comparative advantage in the production of a...
4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods The following graphs show the production possibilities frontiers (PPFS) for Freedonia and Desonia. Both countries produce lemons and sugar, each initially (.e., before specialization and trade) producing 6 million...
Which of the following statements is consistent with Jonathan having a comparative advantage in producing apples?...
Which of the following statements is consistent with Jonathan having a comparative advantage in producing apples? Jonathan can produce more apples (by weight) than anyone else. Jonathan's opportunity cost for producing apples is lower than anyone else’s. Jonathan can sell apples at a lower price than anyone else and still make a profit. Jonathan can produce more apples (by volume) than anyone else.
. In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France...
. In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France in car production relative to ship production" is equivalent to (a) France having a comparative advantage over Germany in ship production. (b) France having a comparative disadvantage compared to Germany in car pro- duction and ship production (c) Germany having a comparative advantage over France in car production and ship production d) France having no comparative advantage over Germany e) France should produce cars....
According to the principle of comparative advantage, a nation should specialize in producing those products which
According to the principle of comparative advantage, a nation should specialize in producing those products which other nations are unable to produce are hardest to protect through trade barriers it can produce at the lower opportunity cost than its trading partner use the scarcest resources
Leena and Susan both produce cupcakes. Leena's opportunity cost of producing cupcakes is lower than Susan's...
Leena and Susan both produce cupcakes. Leena's opportunity cost of producing cupcakes is lower than Susan's opportunity cost of producing cupcakes. Which of the following statements must be true? a. Susan has a comparative advantage in producing cupcakes. b. Leena has a comparative advantage in producing cupcakes. c. Leena has an absolute advantage in producing cupcakes. d. Susan has an absolute advantage in producing cupcakes.
Maldonia has a comparative advantage in the production of _______ while Sylvania has a comparative advantage in the production of _______ .
4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Sylvania. Both countries produce grain and tea, each initially (i.e., before specialization and trade) producing 24 million pounds of...
5 False The law of comparative advantage says that a. 3. the individual with the lowest...
5 False The law of comparative advantage says that a. 3. the individual with the lowest opportunity cost of producing a particular good should produce it comparative advantage exists only when one person has an absolute advantage in the production of two goods whoever has a comparative advantage in producing a good also has an absolute adva in producing that good b. c. d. whoever has an absolute advantage in producing a good also has a comparative advantag in producing...
4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods The following graphs show the production possibilities frontiers (PPFS) for Freedonia and Desonia. Both countries produce lemons and sugar, each initially (.e., before specialization and trade) producing 6 million...
. In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France in car production relative to ship production" is equivalent to (a) France having a comparative advantage over Germany in ship production. (b) France having a comparative disadvantage compared to Germany in car pro- duction and ship production (c) Germany having a comparative advantage over France in car production and ship production d) France having no comparative advantage over Germany e) France should produce cars....
5 False The law of comparative advantage says that a. 3. the individual with the lowest opportunity cost of producing a particular good should produce it comparative advantage exists only when one person has an absolute advantage in the production of two goods whoever has a comparative advantage in producing a good also has an absolute adva in producing that good b. c. d. whoever has an absolute advantage in producing a good also has a comparative advantag in producing...
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