A producer has a comparative advantage in a good if it is the lowest opportunity cost producer of this good, even if it is not the most efficient producer of this good. True False

Q: What is free trade and what are the benefits of free trade as suggested by the principle of…

A: FREE TRADE Free trade is, in the simplest terms, the total absence of government policies which…

Q: Difference of Heckscher Ohlin Theorem from Comparative advantage theory?

A: International trade is the movement of money, products, and services through international borders…

Q: How is comparative advantage related to early American production?

A: A country has a comparative advantage at producing something if the country can produce it at lower…

Q: Jefferson Franklin 1 wheat 1/2 cotton The table above shows the number of hours required to produce…

A: Opportunity cost refers to the value relinquished when opting for one choice over another, capturing…

Q: Explanation it correctly and details

A: Opportunity cost is the benefit lost while making a different decision. You must compare the…

Q: In a situation where two goods can be produced by two different people, it is possible for one…

A: Comparative advantage refers to the situation under which an individual or country can produce the…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: A country should specialise in a particular good in which it has a competitive advantage.

Q: Which of the following statements is correct? Two countries cannot gain from specialization and…

A: True statement is “two countries cannot gain from specialization and trade if they have identical…

Q: If a country produces only two goods, then it is not possible to have a comparative advantage in the…

A: The exchange of products and services between businesses in several nations is referred to as…

Q: Recent economic reports suggest that the U.S. economy is operating its resources efficiently. This…

A: The central problem of economics is the scarcity of resources. The unlimited wants and the limited…

Q: 10. The following table describes the number of yards of cloth and barrels of wine that can be…

A: Opportunity cost is the cost of producing one good in terms of other.  Absolute advantage is where…

Q: As a country develops economically, what changes usually take place in the goods it exports? Select…

A: The branch that deals with the department where the primary goal is the betterment of economic,…

Q: To say that countries gain from trade means that: a) if one country has an absolute advantage over…

A: Gains from trade refer to the benefits countries receive when they specialize in producing goods in…

Q: A person or nation that has a comparative advantage in the production of a good, should, O A) Have…

A: When a nation is in a position to produce one commodity with an opportunity cost that is lesser than…

Q: In the past, comparative advantages have sometimes shifted from one nation to another. What factors…

A: The concept of comparative advantage introduced by economist David Ricardo, forms the backbone of…

Q: Comparative advantage     The price of the good sold in the market, but not the quantity bought…

A: Answer Option 'C' is correct - Both price and quantity of the good bought and sold in the market

Q: Which country has the absolute advantage in production of Good A? Group of answer choices Country Y…

A: Absolute advantage is a situation when one country can produce a particular good at lower cost in…

Q: The law of comparative advantages in trade typically applies only to trade between nations and…

A: The law of comparative advantage states that in a situation of free trade, an individual or a…

Q: Someone has a comparative advantage in producing a good if they can produce that good in greater…

A: The ability to create goods and services at a lower cost, without necessarily doing so at a higher…

Q: A country produces two goods and the opportunity cost of production of each good is constant. This…

A: Production possibilities curve represents different combinations of two goods that can be produced.…

Q: a)Identify an example of absolute advantage relative to the United States from your data tables. Be…

A: (a) The U.S take a shorter time to produce the products like corn, citrus, apparel, and computer…

Q: Consider two countries (Home and Foreign) that produce goods (with labor and capital) and 2 (with…

A: This can be described as a concept that shows the graphical representation that shows the different…

Q: A country has an absolute advantage in the production of a good if it can _____ of the good than…

A: A country is said to have absolute advantage in producing specific good or service if it can produce…

Q: When each person specializes in production of the good or service for which he or she has a…

A: The gains from specialization and trade are based not on absolute advantage but on comparative…

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

A:

Q: The advantage enjoyed by one country over another, when it has a lower opportunity cost in producing…

A: If country A is able to produce more amount of good X than country B with the same level of…

Q: In an international market, we say that a country will be an (Blank) of a good if it has the (Blank)…

A: International trade refers to the process of exchange of goods, services, and capital across the…

Q: A country is the only producer of a particular prescription drug. This country has a comparative…

A: The inquiry concerns the economic principle of comparative advantage, a cornerstone of international…

Q: See the table here below: Labor Input: Tables and Chairs Production Country X Country Y Chair 2…

A: Answer: Opportunity cost: opportunity cost refers to the production of one good sacrificed to…

Q: Two countries (Home and Foreign) use labor to produce two goods: Cloth and Wheat. The number of…

A: The potential gains that an individual, investor, or organization misses out on when choosing one…

Q: The two phrases/words that can be expressed in terms of each other are? opportunity costs and…

A: Q1: The two phrases/words that can be expressed in terms of each other are:Opportunity Costs and…

Q: According to the theory of comparative advantage, countries gain from trade because Group of answer…

A: Comparative Advantage refers to the ability of a nation to produce a particular good or a service in…

Q: The principle of comparative advantage helps explain trade between nations.  True  False

A: Principle of comparative advantage was given by David Ricardo and it builds on the Principle of…

Q: The law of comparative advantage in trade typically applies only to trade between nations and favors…

A: Comparative advantage is when one party can produce goods with lower opportunity cost. Now this…

Q: If a country opens up for trade, and it ends up importing a good, the net effect of importing that…

A: When the country opens up for trade then it implies that the country trades with other nations. This…

Q: Suppose a country is currently producing at a point on its production possibility frontier, and…

A: Production possibility curve -This is a curve which shows various combination of two goods a country…

Q: n the PPC, if the point is found within the PPC curve, this means that the combination of goods…

A: A PPC (Production Possibility Curve) is a graphical representation of various combinations of goods…

Q: The United States has a comparative advantage in the production of wheat, and Haiti has a…

A: Comparative advantage refers to the situation when both the trading countries or firms has relative…