Explain the law of comparative advantage , people’s production level, and standard of living.

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Answer 1

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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 2, Problem 7CQ

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Explain the law of comparative advantage, people’s production level, and standard of living.

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In the past, comparative advantages have sometimes shifted from one nation to another. What factors do you think caused these shifts? Why? Was there anything a nation could have done to prevent an advantage from shifting to another nation?

According to the "Principle of Comparative Advantage," a country should specialize in producing a good or service if it has:a) The highest opportunity cost b) The lowest opportunity cost c) The highest production cost d) The lowest production cost

Will a country import or export products for which it has a comparative advantage? Explain.

Answer 2

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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 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

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Answer 3

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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 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

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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 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

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Answer 5

Chapter 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

Answer 6

Chapter 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

Answer 7

Chapter 2, Problem 7CQ

To determine

Explain the law of comparative advantage, people’s production level, and standard of living.

Answer 8

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Answer 11

Ch. 2 - Prob. 1CQ Ch. 2 - Prob. 2CQ Ch. 2 - Prob. 3CQ Ch. 2 - Prob. 4CQ Ch. 2 - Prob. 5CQ Ch. 2 - Prob. 6CQ Ch. 2 - Prob. 7CQ Ch. 2 - Prob. 8CQ Ch. 2 - Prob. 9CQ Ch. 2 - Prob. 10CQ

Explain the law of comparative advantage , people’s production level, and standard of living.

Solution Summary: The author explains the law of comparative advantage, people's production level, and standard of living. Comparative advantage refers to the ability of output or production of goods and services in an economy at a minimum opportunity cost than the

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Explain the law of comparative advantage, people’s production level, and standard of living.

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Chapter 2 Solutions