Describe the comparative and absolute advantages between US and china.

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

A health study tracked a group of persons for five years. At the beginning of the study, 20%were classified as heavy smokers, 30% as light smokers, and 50% as nonsmokers. Resultsof the study showed that light smokers were twice as likely as nonsmokers to die duringthe five-year study, but only half as likely as heavy smokers.A randomly selected participant from the study died during the five-year period. Calculatethe probability that the participant was a heavy smoker

Consider two assets with the following returns: State Prob. of state R₁ R2 1 23 13 25% 5% 2 -10% 1% Compute the optimal portfolio for an investor having a Bernoulli utility of net returns u(r) = 2√√r+ 10. Compute the certainty equivalent of the optimal portfolio. Do the results change if short-selling is not allowed? If so, how?

In the graph at the right, the average variable cost is curve ☐. The average total cost is curve marginal cost is curve The C Cost per Unit ($) Per Unit Costs A 0 Output Quantity B

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

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

Want to see more full solutions like this?

Chapter 16 Solutions