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 absolute advantage in cloth in wheat?
| Labor requirements Sausage Beer | Australia 12 hr/lb 8 hr/gal |
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Which country has the comparative advantage in producing wheat?
Canada has a comparative advantage in the production of wheat because she has a lower opportunity cost in the production of wheat.
Which country has a comparative advantage in the production of cloth?
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.
Who has absolute advantage in wheat?
The U.S. has an absolute advantage in wheat: producing a ton of wheat uses 10 labor hours in the U.S. vs. 25 in Japan. in one good and specializes in that good, then both countries can gain from trade.
What is absolute advantage example?
A clear example of a nation with an absolute advantage is Saudi Arabia , The ease with which oil is extracted which greatly reduces the cost of extraction is its absolute advantage over other nations.
Has an absolute advantage in the production of wheat?
Answer: Fireland has the absolute advantage in the production of both wheat and cotton.
Which country has the absolute advantage in wheat and which has the comparative advantage in wheat?
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. The country with the lower opportunity cost of producing a good should specialize in producing that output.
Which country has an absolute advantage in sugar?
Which country has an absolute advantage in sugar? Mexico .
Which country has a comparative advantage in producing corn?
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 the highest opportunity cost for producing a yard of cloth?
Which country has the highest opportunity cost for producing a yard of cloth? The opportunity cost of producing a yard of cloth in England is 1/10 barrels of wine and the opportunity cost of producing a yard of cloth in Portugal is 1/2 barrels of wine.
When a country has a comparative advantage in the production of a good?
Transcribed image text: When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner . Then the country will specialize in the production of this good and trade it for other goods.
Which situation is an example of comparative advantage in an international market quizlet?
Which situation is an example of comparative advantage in an international market? Factories in Country A can produce the same number of tablets as factories in Country B , or the factories in Country A could be used to build more laptops than the factories in Country B.
Which country has absolute advantage in the production of food?
For example, the Canadian economy , which is rich in low cost land, has an absolute advantage in agricultural production relative to some other countries. China and other Asian economies export low-cost manufactured goods, which take advantage of their much lower unit labor costs.
Which country has an absolute advantage in computers?
Which country has an absolute advantage in computers? 125 labor hours in Japan , but only 100 in the U.S. The U.S. has an absolute advantage in both goods!
What does Argentina have an absolute advantage in?
Argentina’s comparative advantage is obviously strong in products that are intensive in natural resources , e.g. agricultural and food products, but it is far from confined to low-value-added activities.
