Economic Scenario: Country A has one of the highest real GDP while Country B has one of the highest real GDP per capita in the world respectively. a.what are the (3) comparative differences between real GDP and real GDP per capita. b.What does this tell us, about the well-being of the residents of Country A and B

Economic Scenario: Country A has one of the highest real GDP while Country B has one of the highest real GDP per capita in the world respectively. a.what are the (3) comparative differences between real GDP and real GDP per capita. b.What does this tell us, about the well-being of the residents of Country A and B

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 32P: In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million....

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Comparative Advantage and Absolute Advantage Analysis

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

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Economic Scenario: Country A has one of the highest real GDP while Country B has one of the
highest real GDP per capita in the world respectively.

a.what are the (3) comparative differences between real GDP and real GDP per capita.

b.What does this tell us, about the well-being of the residents of Country A and B?

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Economic Scenario: Country A has one of the highest real GDP while country B has one of the highest real GDP per capita in the world respectively. a. Explain three (3) comparative differences between real GDP and real GDP per capita. b. What does this tell us, about the well-being of the residents of Country A and B ? Give an example of a country to support your answer.
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Absolute and comparative advantage Consider two neighboring island countries, Botoga and Doporia. Each has 900,000 labor hours available per week that it can use to produce wheat, jeans, or a combination of both. The following table shows the amount of labor hours required to produce 1 bushel of wheat or 1 pair of jeans. Wheat Jeans Country (Labor hours per bushel) (Labor hours per pair) Botoga 40 10 Doporia 36 6 _______ (Botoga / Neither / Doporia) has an absolute advantage in the production of wheat, and ______ (Botoga / Neither / Doporia) has an absolute advantage in the production of jeans. Initially, suppose Botoga uses 225,000 hours of labor per week to produce wheat and 675,000 hours per week to produce jeans, while Doporia uses 675,000 hours of labor per week to produce wheat and 225,000 hours per week to produce jeans. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries,…
The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is? a.an expansion in investment resulting from a reallocation of resources away from consumption. b.an increase in the profitability of business enterprises resulting from an increase in investment. c.greater equality of income resulting from an increase in the number of workers. d.a larger output resulting from a more efficient use of resources.
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Thank you in advance.