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Absolute advantage is the ability of a country to produce a good or service at a lower per unit cost as compared to any other country that produces same good or service.
A country has a comparative advantage in producing that good if the opportunity cost of producing that good is lower in that country as compared to another country.
How do the theories of absolute advantage and comparative advantage differ? During which centuries were this...
How do you calculate absolute and comparative advantage
Explain how absolute advantage differs from comparative advantage. (4 marks)
Define absolute and comparative advantages. Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage.
Using the framework in Table 6.1, explain which of the theories relate to Taiwan’s trade policy during each of the eras described in the case. A check mark indicates that a theory of trade concerns itself with the question asked at the head of the column; if there’s a dash, it doesn’t. In the last four columns, you can see how each theory responds to the specific question; again, a dash indicates that the theory does not address the question....
what is the comparative advantage argument for currency swaps? how does the argument differ for interest rate swaps?
9. Comparative advantage is defined in terms of: efficiency. absolute advantage. opportunity cost. specialization. 10. David can wash four cars in one hour or cut two lawns. Ralph can wash three cars in one hour or cut two lawns. David's opportunity cost for cutting one lawn is car washes, and Ralph's opportunity cost for cutting one lawn is car washes. a. 2; 1.5 4; 3.5 1.5; 2 d. 3.5; 4 11. Gains from trade are based on rather than: opportunity...
compare and contrast two nursing theories. How do they differ based on their intent, scope, and goals? Which one might be more relevant to your future role and why
International trade is considered to be an important component of the economy. Explain how the Theory of Absolute Advantage, Theory of Comparative Advantage and the Hecksher-Ohlin Theory determine what a nation should produce for trade. Some economists argue that countries must have free, unregulated trade, do you agree? Why or why not?
1. Which of the following is true? A. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. B. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. C. A nation cannot have an absolute advantage in the production of every good. D. A nation cannot have a comparative advantage in the production of every good. 2. The fictional country...
3. (4 points) a. What advantage do employers have over workers during bargaining? b. What do you think is a good that the U.S. has a comparative advantage in producing, and why? c. What do you think is a good that the U.S. has an absolute advantage in producing, and why is it absolute as opposed to comparative?