Assume our standard model. It takes Andreas 25 minutes to knit a scarf and 50 minutes to knit a hat. It takes Katya 8 minutes to knit a scarf. If neither has a comparative advantage in scarves, then how many minutes does it take Katya to knit a hat?
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…
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A: The advantage is the condition that benefits or add a favorable position in the situation.
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A: Let's summarize the given information into tabular form. Kate Jack Car wax /day 2 2 car…
Q: Assume our standard model. Andreas can knit 4 scarves per hour and 3 hats per hour. Katya can knit…
A: Given: In an hour, Andreas can knit 4 scarves and 3 hats. Katya can knit 12 scarves and 6 hats.
Q: Give an example in which one person has an absoluteadvantage in doing something but another…
A: ANS Let us assume two individuals A and B manufacturing two goods X & Y each. Let us also assume…
Q: Put ECG Machines on the vertical axis and Defibrillators on the horizontal axis. Draw the production…
A: The production possibility curve (PPC) of a production plant is a locus of different combination of…
Q: Question 1: Using the same amount of time and resources. Sara can either write 100 lines of code or…
A: The comparative advantage delineates the benefits that an individual enjoys when he/she can make a…
Q: Question 25 Please refer to Maxine's & Daisy's PPFs Who has a comparative advantage in pies? Group…
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Q: According to the Heckscher-Ohlin model, Brazil will have a comparative advantage in oranges if the…
A: The Hakcher-Oli Allen model is an economic introduction that they can produce the country that can…
Q: Is the following statement true or false? Please explain. "Everyone has a comparative advantage."
A: The flow of goods and services across borders is known as the international trade. The economist…
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A: Hello, thank you for the question. Since there are multiple subpart questions posted here, only the…
Q: Who has the comparative advantage in the production of good x ?
A: A nation engages in the international trade of goods on the basis of comparative advantage. A nation…
Q: enter responses rounded to two decimal places .
A: Two auto mechanics, Nancy and Bill are replacing a clutch and a set of brakes. The following table…
Q: Sonya takes 5 minures to iron a shirt and 10 minutes to type a paper. Grace takes 5 minutes to iron…
A: The opportunity cost is the cost of the next best alternative when the good is put to the…
Q: Mary can wax 6 cars per day or wash 4 cars per day and John can wax 3 cars per day or wash 3 cars…
A: Opportunity Cost: the opportunity cost of any goods and services is the cost of other goods and…
Q: Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to…
A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…
Q: Assume our standard model. In any hour, Andreas can knit 5 scarves or 2 hats. In any hour, Katya can…
A: Answer: Introduction: Comparative advantage: if a person has the least opportunity cost of producing…
Q: Distinguish between absolute advantage and comparative advantage
A: Absolute advantage Comparative advantage When the country is able to produce a good at a lower…
Q: The principle of comparative advantage suggests that, if New York and Florida exchange taxi parts…
A: Comparative advantage is an economic law that dates back to the early 1800s. When it comes to free…
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: Assume Indonesia and China are trading partners. Indonesia initially exports palm oil to and imports…
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Q: Jason and Holly produce lollipops and chocolates. Their production possibilities are given by the…
A: The theory of comparative advantage suggests that countries should specialize in the production of…
Q: There are two countries: Country A and Country B. These countries have the same amount of resources…
A: Comparative Advantage occurs when a country produce the good efficiently and relatively at a lower…
Q: Consider a 2x2x2 Heckscher-Ohlin model with two countries, Australia and Japan. Australia produces…
A: The Stolper-Samuelson Theorem predicts that in India, as trade barriers continue to decline, the…
Q: Nancy and Bill are auto mechanics. Nancy takes 8 hours to replace a clutch and 6 hours to replace a…
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Q: Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build…
A: Comparative advantage is the ability of a producer to produce the product with least opportunity…
Q: Assume our standard model. It takes Andreas 60 minutes to make a unit of beer and 15 minutes to make…
A: Opportunity cost also called implicit cost is the cost of the second-best alternative foregone.…
Q: Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis.…
A: Answer - Production Possibility frontier (PPF) - It is a curve which shows combinations of two…
Q: The United States produces 8 units of lumber and 8 automobiles. Canada produces 4 units of lumber…
A: lumber automobiles united states 8 8 canada 4 2 united states has an absolute advantage in…
Q: Consider two countries (Russia and India) that can produce two goods (Books and Automobiles) using…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Explain the theory of comparative advantage using an example, and describe five (5) assumptions.
A: comparative advantage alludes to the capacity of a country to create specific labor and products at…
Q: Is it possible to have a comparative advantage without having any absolute advantages ? Yes or No
A: A nation is said to have an absolute advantage in the production of a good (let's say X) if the…
Q: Tom and Peyton have different abilities in the production of wings and beer. Tom can produce 120…
A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…
Q: Compare and contrast absolute advantage and comparative advantage
A: Absolute advantage is the ability of a party (person, company or country) can produce large quantity…
Q: Because of the existence of comparative advantage, the total output of goods is higher when each…
A: Comparative advantage occurs when a producer produces a good at a lower opportunity cost than…
Q: If people specialize in producing those goods for which they possess a comparative advantage, then…
A: International trade is carried out by expanding the products beyond the reach of the local…
Q: ill are auto mechanics. Nancy takes 6 hours to replace a clutch and 4 hours to replace a set of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The following statement is true about comparative advantage. The principle was developed by the…
A: The opportunity cost is the cost of decreasing one commodity unit by sacrificing it and increasing…
Q: Between a straight line PPF and a concave PPF, which one is more realistic? Why? Defend your answer.
A: Production possibility curve: The production possibility curve is the curve that exhibits the full…
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A: Comparative cost advantage: - it is a principle of international trade given by David Ricardo which…
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Q: Is it possible to not have a comparative advantage at anything? Why or why not?
A: We define opportunity cost as the value of the next best alternative forgone. Comparative advantage…
Q: Which trade advantage is used more commonly among economists? absolute advantage comparative…
A: Trade advantages are key to get involved in the international trade. The trade advantages are…
Assume our standard model. It takes Andreas 25 minutes to knit a scarf and 50 minutes to knit a hat. It takes Katya 8 minutes to knit a scarf. If neither has a
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- Alice and Bob each produce haircuts and landscaping services. Alice can provide 4 haircuts in one hour. Bob can provide 2 haircuts in one hour. It takes Alice 2 hours to landscape an acre of property. It takes Bob 1 hour to landscape an acre of property. Assume Alice and Bob both work a standard 8 hour day. Which of the following must be true? (check all that apply) Alice has the absolute advantage in haircuts. Bob has the absolute advantage in landscaping. Bob has the comparative advantage in landscaping. Alice has the comparative advantage in haircuts.Alice and Bob are both capable of producing goods X and Y. In one hour, Alice can produce one unit of each good. In the same amount of time, Bob can produce two units of each good. If Alice and Bob have access to the same amount of time, calculate the difference between the slope of Alice's PPF and the slope of Bob's PPF. (round to two decimal places if necessary)Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Which of the following choices would benefit both Chip and Monk if trade occurred? Please choose the correct answer from the following choices, and then select the submit answer button. 1 pound of fruit for 2/5 pound of nuts 1 pound of fruit for 1 pound of nuts. 1 pound of fruit for 3/4 pound of nuts 1 pound of fruit for 1/10 pound of nuts I dont understand the math breakdown for these types of trade question I realize Chip Fruit to nuts is 2:1 and Monk is 3:1 but that is where I dont undersand the further breakdown
- Suppose two roommates, Sam and Terry, agree that they should clean the apartment each week. It takes Sam one hour to vacuum, and one hour to clean the bathroom. It would take Terry 90 minutes to vacuum and 2 hours to clean the bathroom. Does Terry have a Comparative Advantage in one of these activities? Is it possible that if the roommates each do only one of the tasks every week they would have more combined free time than if they alternated weeks of vacuuming and bathroom cleaning?why is it not realistic for a PPF curve to be straight?In one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125 brownies. Suppose Dahyun and Sana each specialize in producing the good in which they have a comparative advantage. Select the statement that is TRUE for the following terms of trade: trade 1 cake for 7 brownies a Dahyun loses but Sana gains b Dahyun gains but Sana loses c Dahyun gains but Sana is neither better nor worse off (i.e. she is indifferent) d Both Dahyun and Sana are better off
- Jefferson Franklin 1 wheat 1/2 cotton The table above shows the number of hours required to produce one bushel of cotton and one bushel of wheat for Jefferson and Franklin. If each person specializes according to his comparative advantage(s), a mutually beneficial price ratio would be = 1 wheat= 2/3 cotton 1 wheat = 0.4 cotton Cotton (per bushel) 10 hours 12 hours 1 wheat 1/3 cotton = Wheat (per bushel) 5 hours 4 hours raKim and Abby are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Kim and Abby, of taking time to clean their room: If both Kim and Abby clean, they each spend two hours and get a clean room. If Kim decides not to clean and Abby does all the cleaning, then Abby spends 10 hours cleaning (Kim spends 0) but Abby is exhausted. The same would occur for Kim if Abby decided not to clean - Kim spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. a. What is the best outcome for Kim and Abby? What is the worst outcome? (It may help you to construct a prisoner's dilemma table) b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst outcome will probably be chosen instead. Explain what it is about Kim's and Abby's reasoning that will lead them both to choose the worst outcome.Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. Assume, initially, that there is no possibility of trade between Elliot and Jordy. If Elliot wishes to consume 4 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 4 fish? Briefly explain your reasoning. If Jordy wishes to consume 2 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 2 fish? Briefly explain your reasoning. Now assume that trade is possible between Elliot and Jordy. If they want to continue to consume the same number of fish indicated in part (1), how many additional pineapples would they be able to collectively consume each day relative to…
- Put ECG Machines on the vertical axis and Defibrillators on the horizontal axis. Draw the production possibilities curve for Plant R. On a separate graph, draw the production possibilities curve for Plant S. Which plant has a comparative advantage in ECG Machines? In Defibrillators? Now draw the combined curves for the two plants. Suppose the firm decides to produce 100 Defibrillators. Where will it produce them? How many ECG Machines will it be able to produce? Where will it produce the ECG Machines?Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to tidy it. Here are the costs and benefits to both Becky and Sarah of taking the time to clean their room: If both Becky and Sarah clean, they each spend two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to clean—Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoner’s dilemma table.) Unfortunately, we know that the optimal outcome will most likely not happen, and that the sisters probably will choose the worst one instead. Explain what it is about Becky’s and Sarah’s reasoning that will lead them both to choose the worst…Becky and Sarah are sisters who share a room. Their room can easily get messy, and their parents are always telling them to tidy it. Here are the costs and benefits to both Becky and Sarah of taking the time to clean their room: If both Becky and Sarah clean, they each spend two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to clean—Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoner’s dilemma table.)