Answered: France has absolute advantage in the…

France has absolute advantage in the production of ither grapes nor textiles. (A: grapes; B: textiles: C. both grapes and textiles: D: ne

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations…

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: BASIL (Millions of pounds) 96 84 72 48 36 24 12 0 0 PPF 1 12 1 Glacier 36 P 24 48 60 72 ALMONDS…

A: Comparative Advantage is a concept of International trade. It explains the benefits of trade…

Q: When exports are subsidized, _____. a. the amounts of actual labor, raw material, and capital…

A: There are generally four factors that are used in the process of production .They are labor ,…

Q: 44 え40 36 32 28 24 20 16 12 8. 16 24 32 40 48 56 64 Quantity (millions of shirts per year) The…

Q: Decisions for Tomorrow a. Graphically show the impact of the retaliatory tariff in the Chinese…

A: There is a benefit to having no restrictions on or few obstacles to the movement of goods and…

Q: price 8f coffe would 5. Which country(ies) would gain from free trade? 3. Two countries, Taiwan and…

A: Autarky is a kind of self-reliance and restricted trade that is commonly characterized as a form of…

Q: If Portugal has a total of 120 man-hours of resources available for production, while England has…

A: The relative price of a good or service is the price of that good or service compared to the price…

Q: If United States has a comparative advantage over Japan in the production of cars, then. O the…

A: Meaning of Opportunity Cost: The term opportunity cost refers to the situation under which the…

Q: Suppose the production of chocolate and wine per hour of labor in Italy and France is as follows:…

A: a) From the given table we observe that using all its resources, Italy can produce either 8 bars of…

Q: 2. In the USA 1 unit of labor can produce 50 cars while in Canada 1 unit of labor can produce 5…

A: Comparative Advantage: In the trade theory the country which have comparative advantage in producing…

Q: Assume that, under autarky, coffee is cheaper in Brazil than in Japan. How does the price of coffee…

A: Here, it is given that the autarky price of coffee is less in Brazil as compared to Japan.

Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…

A: Comparative advantage refers to the phenomenon where the country can produce the good with the…

Q: 1. Which of the following statements is true about a downward-sloping demand curve that is a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 96 basil. 84 72 60 48 36 24 12 0 PPF ▬▬▬▬▬▬▬ 0 12 Shenandoah 24 36 48 60 72 PEAS (Millions of…

A: The problem case focuses on identifying the comparative advantage for countries and identifying the…

Q: assist please Which of the following statements best exemplifies the concept of relative advantage…

A: The objective of the question is to identify which statement best represents the concept of relative…

Q: Argentina can produce 150 pounds of beef or 20 cars; in contrast the United States can produ pounds…

A: Every decision involves an opportunity cost. In order to consume more of one good, the other has to…

Q: Corn 60 O 60 80 O 120 United States 20 60 Peanuts Corn Using the graph above, if Canada has a…

A: Comparative advantage is the ability of an individual, organization, or nation to produce a certain…

Q: What insights do welfare analysis (consumer surplus/producer surplus) offer into international…

A: International trade refers to when an economy is open to trade with the rest of the world by selling…

Q: Please use the following table to select the right choice. Country England Portugal Hours of work…

A: Absolute advantage means a better production capabilities of a country and the comparative advantage…

Q: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40…

A: International trade takes place only when the country has a comparative or an absolute advantage in…

Q: 5 Looking table, which gives the unit labour requirement USA Germany Amrah 12 50

A: When two nations are compared and one of the nations has a lower OC in producing a service or…

Q: A worker in Mexico takes 600 hours to produce a truck and 3 hours to produce a case of beer. A…

A: In the international market, a country will have specialization in a specific good when it produces…

Q: 1-What is a comparative advantage in the context of international trade? What is the US traditional…

A: Globalisation has widened the domestic market to globe one . In which scope for firms , companies…

Q: Suppose that one day of labor in each country produces the following quantities of fish and cheese:…

A: Comparative advantage is an economy's ability to produce a specific product or service at a lower…

Q: Figure: Comparative Advantage II Eastland and Westland produce only two goods, boxes of peaches and…

A: Opportunity cost is the units of one good that have to be foregone to produce an additional unit of…

Q: For this question, only consider Korea and the United States. If the United States is better at…

A: Absolute Advantage: When a country can produce a good with fewer resources (such as labor, capital,…

Q: Boston socks. Chicago Without trade, the price of a pair of white socks (in terms of red socks) in…

A: Comparative advantage is an economic concept that describes the ability of a country to produce a…

Q: han unit(s) of cloth. 1. With mutually beneficial trade, cloth will be exported by Great Britain han…

A: Countries wheat production cloth production Great Britain 140 480 United States 1120 560 This…

Q: Using the numbers in the table, determine which country has a comparative advantage in producing…

A: When a decision is made to devote resources (such as time, money, or effort) to a particular choice…

Q: Suppose that France and Germany both produce wine and schnitzel. Thne table below snows combinations…

A: The exchange of goods and services across borders is known as the international trade. International…

Q: Refer to the accompanying production possibilities tables. Data are in millions of units. Suppose…

A: From the table it has to be found which country has a comparative advantage(CA) in which good, which…

Q: 8. Assume that now trade happens. The relative supply of wine in the home country is less than the…

A: It is given that the domestic supply of wine is less in home country than the world due to which…

Q: Jse the information in the table below to answer the following question: Which of the following is…

A: Absolute advantage is the advantage which a country has when the country is able to producer one or…

Q: 1. One German worker can produce either 5 cars or 10 tons of grain a year. One Japanese worker can…

A: A country has a comparative advantage in producing that good if the opportunity cost of producing…

Q: while Denali has a comparative advantage in the Shenandoah has a comparative advantage in the…

A: Comparative advantage theory: It was introduced by David Ricardo in 1817. It is an updated version…

Q: The graph shows the PPC for a country that can produce coffee or butter. Pounds of coffee…

A: A production possibility curve (PPC) indicates the most viable output combos of two items or…

Q: Why does the United States not have an absolute advantage in coffee? Explain.

A: Absolute advantage refers to the efficiency of economy where a particular production can be produced…

Q: COFFEE (Milions of pounds) 48 42 36 30 24 18 PPF 12 6 0 0 ——— 1 Maldonla 6 12 18 24 30 36 POTATOES…

A: A country with a given level of resources always looks to maximize its production level. However,…

Q: The figure below shows the hypothetical domestic supply and demand for baseball caps in the country…

A: An import tariff stands as a tax applied to goods brought into a country from abroad. It falls under…

Q: Chile's Production Possibilities Frontier ↑soybeans (in pounds) 20 18 16+ 14+ 12 10 8 6 2 A 6 8 10…

A: Opportunity cost is the cost of the next best thing that you didn’t choose. For example, if you…

Q: Figure 9-1 The figure illustrates the market for coffee in Guatemala 1PN 150- 140 130- 120- 110- 100…

A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. The higher the…

Q: Explain (with example) the concept of public policy induced comparative advantage.

A: Note: Since you have posted multiple questions, we will provide the solution only to the first five…

Q: Table 3-5 England Spain Labour hours needed to make one unit: Cheese 1 Select one: O a. consumers…

A: The objective of the question is to identify who benefits in England when England and Spain…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

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

Question

Goods
Grapes
Textiles
Spain
8
4
Note: figures are hours of labor per unit of output
France
15
5

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Figure 2-9 Snow cones 240 0 Greenland 200 Popsicles A) Greenland Snow cones 270 0 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles. C) Iceland Refer to Figure 2-9. Which country has a comparative advantage in the production of popsicles? B They have equal productive abilities. D) neither country Iceland 180 Popsicles
Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate bars: Bicycles per worker/year Chocolate Bars per worker/year 10,000 20,000 Switzerland 1 United States 5 a. The United States has an absolute advantage in both bicycles and chocolate bars, but which country has a comparative advantage producing bicycles? Chocolate bars? b. Assume there are 10,000 workers. Draw the production possibilities frontier for the United States prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on the U.S. production possibilities frontier (put bicycles on the x-axis and millions of chocolate bars on the y-axis). c. Assume there are 10,000 workers. Draw the production possibilities frontier for Switzerland prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on Switzerland's…
.Brazil can produce 100 pounds of beef or 10 autos; in contrast the United States can produce 40pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has theabsolute advantage in producing autos? What is the opportunity cost of producing one pound of beef inBrazil? What is the opportunity cost of producing one pound of beef in the United States?
Which of the following statements is TRUE? Output per Day of Work Food Clothing Country A 6. 3 Country B 1 Country A has an absolute advantage in making clothing. Country B has an absolute advantage in making food. Country B has a comparative advantage in making food. Country A has a comparative advantage in making clothing. O Country A will import the item in which it has a comparative advantage.
According to the Infant Industry Argument Poor countries can foster economic development by using tariffs to protect new firms while they learn to become more productive. O Countries that allow children to work have an unfair advantage in international trade. O Costs of young firms are low because their workers lack seniority, and this contributes to comparative advantage. O When technological change creates a new product, it is the innovating country that is likely to be able to export it.
The graph below shows a small country that produces wine, with no international trade, existing in a state of autarky. 0 Price (dollars per barrel) 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Market for Wine S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity (millions of barrels) Tools Pworld i Q₁ -8 Q₁ a. What is the initial market price and quantity of wine traded in equilibrium? Ре Pe: $ per barrel Qe million barrels Now suppose this small country opens its market to international trade. Suppose the world price of wine is $60 per barrel. b. Use the graph above to indicate the world price, the new domestic quantity supplied (Q), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. million barrels of wine. c. At the world price of $60 per barrel, this…
5. Look at the following table, which gives the unit labour requirement in an imaginary two-good, two-country world: USA 2 50 Cars Aircraft Germany 3 60 In this scenario, Germany has a comparative advantage in car production.
Price (dollars per battery) 20 18 16 14 12 10 8 A 8 C D Sus World price + tariff World price Dus 100 300 500 700 900 1,100 1,300 Quantity (thousands of batteries) The above figure shows the U.S. market for replacement cell phone batteries. When there is no international trade, the equilibrium price is per battery and when there is international trade the equilibrium price is per battery.
Suppose the government has imposed a price ceiling on cellular phones. Which of the following events could transform the price ceiling from one that is binding to one that is not binding? Select one: O a. Traditional land line phones become more expensive. O b. Cellular phones become more popular. O. A technological advance makes cellular phone production less expensive. O d. The components used to produce cellular phones become more expensive.
Microchips 90 U.S. PPF Which country has comparative advantage in the production of Microchips? Which country has comparative advantage in the production of Brooms? Which country has absolute advantage in the production of Microchips? Which country has absolute advantage in the production of Brooms? Microchips Brooms [Choose ] [Choose ] [Choose ] [Choose ] 10 MEXICO PPF Brooms
Table 3. This table provides Production Possibility Frontier information for England and France. Country England France Good W 10 20 Good Z 15 40 Refer to Table 3. Which of the following statements is true? England has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good W and France has an absolute advantage with respect to Good Z. France has an absolute advantage with respect to both goods. England has an absolute advantage with respect to Good Z and France has an absolute advantage with respect to Good W.
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. Germany France Wine (Bottles) Cheese (Pounds) 0 1 2 3 4 8 6 4 2 0 Wine (Bottles) 0 1 2 3 4 5 Cheese (Pounds) 20 16 12 8 4 0 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. Germany has a comparative advantage producing wine and cheese. OB. Neither has a comparative advantage producing wine or cheese. O C. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. France has a comparative advantage producing wine and cheese. O D. O E. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. Suppose that France is currently producing 1 bottle of wine and 6 pounds of cheese and Germany is currently producing 3 bottles of wine and 8 pounds of cheese. Then, assume instead that…