Suppose that Poland and Wales both produce ale and glass. Poland's opportunity cost of producing a pane of glass is 4 kegs of ale while Wales's opportunity cost of producing a pane of glass is 12 kegs of ale. By comparing the opportunity cost of producing glass in the two countries, you can tell thatWales   has a comparative advantage in the production of glass andPoland   has a comparative advantage in the production of ale.   Suppose that Poland and Wales consider trading glass and ale with each other. Poland can gain from specialization and trade as long as it receives more than    of ale for each pane of glass it exports to Wales. Similarly, Wales can gain from trade as long as it receives more than    of glass for each keg of ale it exports to Poland.

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: Consider the following Table representing the number of hours to make 1 unit of Soybeans and…

A: In this case, we have to discuss the term absolute advantage and comparative advantage of this…

Q: i need the answer quickly

A: Japan has absolute advantage in the production of cars as it can make 80 cars in 2400 hours whereas…

Q: The table shows the units of output a worker can produce per hour in Germany and Korea for two…

A: A country has a comparative advantage if it can produce an item or service at a lower/less…

Q: Suppose that two countries can produce wheat or cotton. If country A produces only wheat it can…

A: Feasible terms of trade are such terms that benefit both the nations that engage in trade.

Q: Beef 30 22 18 12 0 Beef 14 11 8 3 0 United States Mexico Vegetables 0 8 12 21 24 Vegetables 0 1 4 11…

A: A country specializes in a good or service for which it has a comparative advantage. Therefore, a…

Q: Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can…

A: The table below summarises the information provided:   Pretzels Car Germany 40 20 Canada 73…

Q: has an absolute advantage in the production of alfalfa, and Sean's opportunity cost of producing 1…

A: Absolute advantage refers to the ability to produce more goods using the same resources or same…

Q: The following table shows the output of textile and auto one unit of labor can produce in the U.K.…

A: Absolute advantage describes circumstances in which one company or country can create a specific…

Q: O Countries often engage in FDI in industries where the country they invest in has a comparative…

A: A foreign direct investment involves an organization or individual situated in one nation putting…

Q: When a country has a comparative advantage in the production of a good, it means that it can produce…

A: To solve this problem, we need to analyze the given production possibilities frontiers (PPFs) for…

Q: Toma and Kana can produce either books or shoes. If they spent all of their time producing one of…

A: To find the comparative advantage we have to find the opportunity good of producing books and shoe's…

Q: The following figure illustrates the production possibilities for two countries, Russia and Canada.…

A: A country should specialize in the production of the good  it has the comparative advantage inA…

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: None

A: [Please note that blanks are numbered from 1 to 4]Step 1:(1) Ireland has a comparative advantage in…

Q: Freedonia has a comparative advantage in the production of production of ' , while Lamponia has a…

A: Freedonia has a comparative advantage in the production of Potatoes, while Sylvania has a…

Q: Draw a demand curve and label it D1. On the graph, illustrate an increase in demand and a decrease…

A: Demand analysis is important in economics in order to arrive at equilibrium point where the forces…

Q: Which of the following statements is correct? O Only when a country has an absolute advantage in…

A: The amount of a good that is being given up being divided by the amount that is being gained is…

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: 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: The following hypothetical production possibilities tables for China and Canada. Assume that, before…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: The fictional country of Anastialia is a small country with rich resources in minerals. In a day it…

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

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: 56 56 48 48 PPF 40 40 32 32 24 PPF 24 16 16 - -- -- -- - 8 16 24 32 40 48 56 64 16 24 32 40 48 56 64…

A: Opportunity cost refers to the loss due to giving up the best alternative in making a decision.

Q: comparative advantage

A: Comparative advantage is an economic principle that refers back to the potential of a rustic,…

Q: Poland requires 4 hours of labor to produce 1 ton of coal and I hour of labor to pro wheat. The…

A: Given information: Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to…

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

A: As per given information, Production level   Wine Cheese Germany 5 25 France 4 16…

Q: Snow cones 240 0 Greenland 200 Popsicles Snow cones 270 0 Iceland O 100 popsicles & 130 snow cones;…

A: 100 popsicles & 130 snow cones; 100 popsicles & 140 snow scones: This choice violates the…

Comparative Advantage and Absolute Advantage Analysis

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