Q.1.16 Japan has a comparative advantage over Germany in the production of cars if it:(1)Is able to produce cars at a faster rate than Germany;(2)Produces cars at a lower opportunity cost than Germany;(3)Has the absolute advantage in car production;(4)Exports more cars than Germany.

Comparative advantage is the advantage in which a country can produce a good relatively cheaper than…

Answered: Japan has a comparative advantage over…

Business

Economics

Japan has a comparative advantage over Germany in the production of cars if it:

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: Explain briefly why a country can have an absolute advantage in the production of two goods, and yet…

A: In international market, trade between the countries take place on the basis of various approaches…

Q: ase see below. Need help with this.

A: Comparative advantage arises when the country produces good at lower opportunity cost than other…

Q: Using the following data, decide which country has comparative advantage for which good: good x…

A: Theory of comparative advantage was given by David Ricardo. According to David Ricardo gains from…

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: can import tariffs and quotas reduce the benefits of trade in regards to absolute and comparative…

A: Answer: Introduction: Absolute advantage refers to the production of goods using fewer resources…

Q: Real world examples of comparative advantage in the Philippines

A: Philippine government policies have historically been anti-agricultural. However, in the 1970s,…

Q: In Qatar, a worker can produce either one unit of salt or two units of pepper. In Korea, one worker…

A: When a product can be produced at a lower opportunity cost by a country than its other trading…

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: Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in…

A: A nation is said to have comparative advantage in the production of a good or service if it can…

Q: Country X has a comparative advantage in producing paper and country Y has a comparative advantage…

A: Since the opportunity cost of production is reduced as a result of specialization, more goods are…

Q: For a producer to have a comparative advantage in a good is it necessary to be the most efficient…

A: Comparative Advantage: In the trade theory the country which has comparative a advantage in…

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: Why Japan is dependent on food import?

A: Definition: An import is a decent or administration purchased in one country that was delivered in…

Q: Relative to China, in which industries do you think the US has a comparative advantage (in which…

A: US is a developed and one of the most developed economy in the world.

Q: can you help me rewording this paragraph? Since Ghana and Côte d'Ivoire have similar environment,…

A: Ghana shares similar economy as Côte d'Ivoire, and there are differences in the economy of Ghana and…

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: 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: (? Freedonia Desonia 64 64 56 56 48 PPF 48 40 40 32 32 24 24 PPF 16 16 - --- -- --- 8 8 16 24 32 40…

A: Answer: It is given in the question that: Potatoes Tea Freedonia 32 48 Desonia…

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: The demand for cameras in a certain country is given by D=8000−30P, where P is the price of a…

A: The equilibrium is established where the demand and supply are equal.

Q: Suppose that each country completely specializes in the production of the good in which it has a…

A: In economics, the value of what you must give up in order to choose something else is referred to as…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

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

Question

Q.1.16 Japan has a comparative advantage over Germany in the production of cars if it:
(1)
Is able to produce cars at a faster rate than Germany;
(2)
Produces cars at a lower opportunity cost than Germany;
(3)
Has the absolute advantage in car production;
(4)
Exports more cars than Germany.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 DEFINITION

VIEW

Step 2 ANSWER

VIEW

Trending now

This is a popular solution!

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

Automobiles Computers USA 20 15 Germany 15 5 if both countries produce according to the respective comparative advantages, what…
A small country imports salt. With free trade at the world price of $10 per pound, the country's national market is as follows: Domestic production: 100 million pounds per year Domestic consumption: 200 million pounds per year The country's government now decides to impose a $3 tariff per pound that limits salt imports to 40 million pounds per year. With the tariff in effect, the domestic production increases to 130 million pounds per year. Answer the following 3 questions according to this information. How much is the domestic producers gain or loss from the quota? How much is the domestic consumers' gain or loss after tariff? What is the government revenue from tariff?
Corn Sunscreen Mexico 300 150 France 200 150 Which nation has the comparative advantage in production of sunscreen? Group of answer choices Mexico Neither has a comparative advantage None of the above France
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces pistachios will produce. million pounds per day and the country that produces chinos will produce million pairs per day.
No written by hand solution Based on information below (2 countries x 2 products), if US has comparative advantage in producing Rice, what can you say about X? (note: figures represent production or output.) Please assume that X is a positive number. Rice Car US 7 6 Korea 9 X X < 4 X > 54/7 X < 63/7 X < 7
Assume that the comparative-cost ratios of two products-baby formula and tuna fish-are as follows in the nations of Canswicki and Tunata: Canswicki: 1 can baby formula = 3 cans tuna fish Tunata: 1 can baby formula = 5 cans tuna fish a. In what product should each nation specialize? Canswicki should produce [(Click to select), and Tunata should produce [(Click to select) ♥ b. Would the following terms of trade be acceptable to both nations? i. 1 can baby formula = 2 cans tuna fish: (Click to select) ii. 1 can baby formula = 3.5 cans tuna fish: (Click to select) iii. 1 can baby formula = 6 cans tuna fish: (Click to select)
From an economic point of view, India and China are somewhat similar: Both are huge, low-wage countries, probably with similar patterns of comparative advantage, which until recently were relatively closed to international trade. China was the first to open up. Now that India is also opening up to world trade, how would you expect this to affect the welfare of China? Of the United States? (Hint: Think of adding a new economy identical to that of China to the world economy.) A. From China's perspective, the world relative supply curve will shift to the left. This shift will improve China's terms of trade. The U.S. purchases of Chinese exports will hurt the U.S. by decreasing the relative price of goods that the U.S. exports. B. From China's perspective, the world relative supply curve will shift to the right. This shift will worsen China's terms of trade. The U.S. purchase of Chinese exports will benefit the U.S. by increasing the relative price of goods that the U.S. exports. C. From…
What is South Koreas' Major exports and foreign investment in the country
Many economists predict the eventual rise of China as a "superpower" because of economic reform, along with a strong work ethic and increased emphasis on higher education for its population. How do you think trade between Asia, Europe, and North America will be affected by China's continued development?
Is it possible to have a comparative advantage without having any absolute advantages ? Yes or No
Choose four countries. One country in North America, another country in Central America, another country in the Caribbean and another country in South America and indicate, using the gravity model, which factors should increase or reduce trade between those countries. After that, choose a country in Europe and indicate, using the Gravity Model, how the intensity of trade changes with five countries. You must take into account the concept of the gravity model and the factors that affect trade such as language, culture, trade agreements, among others. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
If the United States produces 8 automobiles and Canada produces and Canada produces 2 automobiles, and the United States produces 8 units of lumber and Canada produces 4 units of lumber, should Canada trade with the U.S.? If so, what should be imported and what should be exported?