The United States
has the absolute advantage in the production of both cars and wine. It can produce more of both goods.
Which country has the absolute advantage in cars?
The United States
has the absolute advantage in the production of both cars and wine. It can produce more of both goods.
Which country has a comparative advantage in the production of automobiles?
Japan
has a comparative advantage in producing cars, since it has a lower opportunity cost in terms of grain given up.
Which country has absolute advantage and which has comparative advantage in wheat production?
The U.S.
has an absolute advantage in wheat: producing a ton of wheat uses 10 labor hours in the U.S. vs.
Which country has an absolute advantage in sugar How about cars?
| Sugar Cars | Mexico 50 100 |
|---|
Does Japan have an absolute advantage?
Japan has
absolute advantage in producing both fish and cloth
because one worker can produce more of either goods in Japan. Absolute advantage is determined by comparing the absolute productivity in different countries of producing each good. … However, absolute advantage is not the critical consideration.
Does Japan have an absolute advantage in cars?
Since
Japan is more efficient in the production of cars
and the United States is more efficient in the production of food, Japan has an absolute advantage in the production of cars and the United States has an ab- solute advantage in the production of food. … To produce this car Japan needs six units of labor.
Which country has a comparative advantage in corn production explain?
Since Saudi Arabia gives up the least to produce a barrel of oil, (1⁄4 < 2 in Table 19.4) it has a comparative advantage in oil production.
The United States
gives up the least to produce a bushel of corn, so it has a comparative advantage in corn production.
Which country has an absolute advantage in wheat production?
The U.S.
has an absolute advantage in wheat production since a U.S. worker can produce more wheat than a Chinese worker.
Which country has the comparative advantage in producing dates?
Which country has the COMPARATIVE advantage in producing DATES?
Italy and Libya
produce grain and dates.
Which country has an absolute advantage in the production of cloth?
Note: cloth is represented in millions of yards, while wine is in millions of barrels. d.
Portugal
has an absolute advantage in the production of both goods, because it can produce more cloth and wine than Britain using the same amount of labor.
Which country has a comparative advantage in producing wheat in producing cloth?
The United States has a comparative advantage in wheat because it has the lowest opportunity cost of producing, while
the United Kingdom
has the comparative advantage in cloth.
Which country has the comparative advantage in cloth production?
When comparing the opportunity cost of 1 cloth for both France and
the United States
, we can see that the opportunity cost of cloth is lower in the United States. Therefore, the United States enjoys a comparative advantage in the production of cloth.
Which country has a comparative advantage in sugar?
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.
Jamaica
has the comparative advantage in sugar cane.
What are the 3 shifters of PPC?
- Change in the quantity or quality of resources.
- Change in technology.
- Trade.
How is opportunity cost calculated?
The formula for calculating an opportunity cost is
simply the difference between the expected returns of each option
. Say that you have option A—to invest in the stock market hoping to generate capital gain returns.
