Comparative advantage does not address Question 10 options: whether specialization and trade benefit more than one party to a trade. whether absolute advantage or comparative advantage that really matters. how are the gains from trade shared among the parties to a trade. whether it possible for specialization and trade to increase total output of traded goods.

Comparative advantage occurs when a person or a country can produce the good at a lower opportunity…

Answered: Comparative advantage does not address…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 Shenandoah and Rainier. Both countries produce corn and basil, each initially (i.e., before specialization and trade) producing 6 million pounds of corn and 3 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) BASIL (Millions of pounds) 16 0 16 0 14 PPF 12 2 Shenandoah 4 10 12 CORN (Millions of pounds) PPF 2 6 Note: Dashed drop lines will automatically extend to both axes. 4 14 16 Shenandoah has a comparative advantage in the production of production of . Suppose that Shenandoah and Rainier specialize comparative advantage. After specialization, the two countries can produce a total of basil.…
Explain the theory of comparative advantage. How realistic are the assumptions of this theory?
We are supposed to create a PPF with manufactured goods on the y axis and agricultural goods on the x axis. The question I'm having trouble with is: Congress is currently considering a new immigration policy that would allow people with the entrepreneurial skills and the money to start new businesses permission to emigrate to the U.S. if they start a business in this country that employs at least 5 U.S. workers. Show how you would represent the impact of this policy on the U.S. Explain briefly why you believe your picture changes in the way you illustrated.
Countries have different endowments of factors of production which leads to the law of comparative advantage. Discuss with examples
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 Lamponia. Both countries produce potatoes and tea, each initially (i.e., before specialization and trade) producing 6 million pounds of potatoes and 3 million pounds of tea, as indicated by the grey stars marked with the letter A. Suppose that Freedonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 2 million pounds of potatoes for 2 million pounds of tea. This ratio of goods is known as the price of trade between Freedonia and Lamponia. The following graph shows the same PPF for Freedonia as before, as well as its…
Trade need not be the result of comparative advantage but it can be a result of economies of scale. Discuss.
The two phrases/words that can be expressed in terms of each other are? opportunity costs and comparative advantage Or absolute advantage & comparative advantage In order to have gains in trade between two countries, it is not necessary for there to be (a/an)? absolute advantage True False
According to the theory of comparative advantage, countries gain from trade because Group of answer choices World output can rise when each country specializes in what its does relatively best. All firms can take advantage of cheap labor. Output per worker in each firm increases. Every country has an absolute advantage in producing something. Trade makes firms behave more competitively, reducing their market power
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 Candonia and Lamponia. Both countries produce grain and sugar, each initially (i.e., before specialization and trade) producing 24 million pounds of grain and 12 million pounds of sugar, as indicated by the grey stars marked with the letter A. SUGAR (Millions of pounds) 64 56 48 PPF 40 32 24 16 8 0 0 8 Candonia 16 24 32 40 48 GRAIN (Millions of pounds) 56 64 (?) SUGAR (Millions of pounds) 64 56 48 40 32 24 16 8 0 PPF ———— 0 8 Lamponia A 16 24 32 40 48 GRAIN (Millions of pounds) 56 64 ? Candonia has a comparative advantage in the production of sugar while Lamponia has a comparative advantage in the grain production of ▼ . Suppose that Candonia and Lamponia…
In the PPC, if the point is found within the PPC curve, this means that the combination of goods achieved maximum efficiency. Select one: True False
In a PPC graph, if free trade makes the budget line become flatter and the comparative advantage good is on the y - axis, what has free trade done to the country's terms of trade?
A person or nation that has a comparative advantage in the production of a good, should A) Specialize in the production of that good B) Have the highest opportunity cost C) Not specialize in the production of that good D)Automatically has an absolute advantage

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	whether specialization and trade benefit more than one party to a trade.
	whether absolute advantage or comparative advantage that really matters.
	how are the gains from trade shared among the parties to a trade.
	whether it possible for specialization and trade to increase total output of traded goods.