4. The table below shows the labor requirements for Mr. and Mrs.Howell for pineapples and coconuts. Which is the most accuratestatement?A. Mrs. Howell has a comparative advantage in coconuts and theopportunity cost of 1 coconut for Mrs. Howell is 4 pineapplesB. Mrs. Howell has a comparative advantage in pineapples and theopportunity cost of 1 pineapple for Mrs. Howell is .25 coconuts.C. Mr. Howell has a comparative advantage in pineapples and theopportunity cost of 1 pineapple is 1 coconut.D. Mr. Howell has a comparative advantage in both pineapples andcoconuts and should specialize in pineapples.Labor Requirements for Pineapples and Coconuts1 Pineapple1 CoconutMr. Howell1 hour1 hourMrs. Howell1/2 hour2 hours

An opportunity cost of producing a more of a good is decreasing the production of another good as…

Answered: 4. The table below shows the labor…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 10RQ: What is comparative advantage?

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Similar questions

What is absolute advantage? What is comparative advantage?
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare wilt line same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? Figure 2.4 Productive and Allocative Efficiency
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
What does a production possibilities frontier illustrate?
What is Maries opportunity cost of purchasing a pie?
How does comparative advantage lead to gains from trade?
Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.

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