Describe the comparative and absolute advantages between US and china.

Question

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Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Answer 5

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 6

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 7

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Answer 8

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 12

Ch. 16.A - Prob. 1P Ch. 16.A - Prob. 2P Ch. 16.A - Prob. 16A.1CC Ch. 16 - Prob. 1RQ Ch. 16 - Prob. 2RQ Ch. 16 - Prob. 3RQ Ch. 16 - Prob. 4RQ Ch. 16 - Prob. 5RQ Ch. 16 - Prob. 6RQ Ch. 16 - Prob. 7RQ

Describe the comparative and absolute advantages between US and china.

Concept explainers

Describe the comparative and absolute advantages between US and china.

Explanation of Solution

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Chapter 16 Solutions