2.1) Which country has the comparative advantage of cloth and in machines? Show your calculations.

Q: Suppose the following table shows the number of labor hours needed to produce airplanes and…

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A: (1) Production possibility curve is a curve that represents a different combination of goods that…

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A: The following calculations are done below:

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A: A country has a comparative advantage if it can produce an item or service at a lower/less…

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A: Opportunity cost is value of next best alternative use of resources. In our context, opportunity…

Q: Assume that England and Spain can switch between producing cheese and producing bread at a constant…

A: A country or a person is said to have a comparative advantage if it can produce the good at a lower…

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Q: QUESTION 22 w 80 40 20 40 30 20 10 " England O) Nether Ⓒ) Cant PP 20 x 40 59 NO 50 40 30 20 Portugal…

A: Note: Since you have posted multiple questions, we will provide the solution only to the first…

Q: Comparative advantage is an important concept to explain how economies work. Because of comparative…

A: ▪︎A comparative advantage happens whenever a nation can create merchandise at lower opportunity cost…

Q: Suppose there are two countries for analyses, the United States and Indonesia. Assume that 2000 man…

A: Absolute advantage refers to the capacity of an entity (such as an individual, company, or nation)…

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A: Comparative-Advantage(CA) theory states that the country with the lowest Opportunity-Cost(OC) on…

Q: comparative or absolute advantage

A: Absolute advantage depicts that ability of a firm, or a country to produce goods in absolute numbers…

Q: Two countries produce two goods and they each have 3 million hours of labor.  Consider the table…

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Q: Consider 2 countries (the United States and the France) that use input such as labor to produce 2…

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

Q: The following table shows the total production that can be produced by two countries at 100 workers.…

A: Absolute advantage, when a country can produce more of a good than others using the same amount of…

Q: Steel 50 25 25 50 Chemicals Italy 1 ton of steel for 1/2 ton of chemicals. 1 ton of steel for 1/3…

A: Opportunity cost is the next best alternative.Opportunity cost shows the forgone units of one good…

Q: Refer to Table 1-1  Assume that Derryland and Whetonia each has 40 labor hours available and that…

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Q: Computers                 Wheat country A       10                                4 country B…

A: (Q)               Computers                 Wheat country A       10…

Q: Using the numbers in the table, determine which country has a comparative advantage in producing…

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Q: Suppose the international relative price of gold is 10 bushels of wheat/bar of gold. If South Africa…

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Q: PRODUCT PER WORKER SOUTH AFRICA NIGERIA TABLES 100 UNITS 40 UNITS CHAIRS 50 UNITS 10 UNITS…

A: Given, PRODUCT PER WORKER SOUTH AFRICA NIGERIA TABLES 100 UNITS 40 UNITS CHAIRS 50 UNITS 10…

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

Q: Using the data presented in the table below answer the followings: a) which country has comparative…

A: "If a country has a comparative advantage in producing one commodity then it means that country can…

Comparative Advantage and Absolute Advantage Analysis

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