The advantage to the nation.

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 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

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02:52

Students have asked these similar questions

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically. 2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer.State the condition for a consumer's utility maximizing choice and illustrate graphically.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

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 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

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

02:52

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 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

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

02:52

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 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

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!

02:52

Answer 5

Chapter 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Answer 6

Chapter 9, Problem 1QR

To determine

The advantage to the nation.

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Answer 7

Chapter 9, Problem 1QR

To determine

The advantage to the nation.

Answer 8

Expert Solution & Answer

Explanation of Solution

The international trade is the exchange of goods and services between different nations in the world. The exchange will take place and the main two processes are the export and imports. The exports is the sale of domestic goods to the foreigners and imports is the vice versa.

When the domestic price of the good is lower than the international price of the commodity, it means that the opportunity cost of production is lower in the domestic country than the foreign country. This means that the domestic country has the comparative advantages of production in the commodity compared to the foreign countries. When the situation is inversed and the domestic price is above the foreign price, it means that the country has higher opportunity cost of producing the commodity and there is no comparative advantage in producing the commodity to the domestic country.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

International trade: It is the trade relation between the countries.

Export: It is the process of selling the domestic goods in the international market. Thus, the goods produced in the domestic firms will be sold to other foreign countries. So, it is the outflow of domestic goods and services to the foreign economy.

Import: It is the process of purchasing the foreign made goods and services by the domestic country. Thus, it is the inflow of foreign goods and services to the domestic economy.

Comparative advantage: It is the ability of the country to produce the goods and services at lower opportunity costs than the other countries.

Answer 12

Ch. 9.1 - Prob. 1QQ Ch. 9.2 - Prob. 2QQ Ch. 9.3 - Prob. 3QQ Ch. 9 - Prob. 1QR Ch. 9 - Prob. 2QR Ch. 9 - Prob. 3QR Ch. 9 - Prob. 4QR Ch. 9 - Prob. 5QR Ch. 9 - Prob. 6QR Ch. 9 - Prob. 1QCMC

The advantage to the nation.

Solution Summary: The author explains that international trade is the exchange of goods and services between different nations in the world.

The advantage to the nation.

Explanation of Solution

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Chapter 9 Solutions