Question: Explain how absolute advantage and comparative advantage differ.

Explain how absolute advantage and comparative advantage differ.

Step by Step Solution

★★★★★

3.36 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Absolute advantage reflects a comparison of the productivity of one perso... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

207-B-E-M-EC (794).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

What is the difference between absolute advantage and comparative advantage? If a country has an absolute advantage in producing a good, will it always be an exporter of that good? Briefly explain.

Q:

Explain the difference between absolute and comparative advantage.

Q:

Explain what comparative advantage is. Make up an example to illustrate this concept.

Q:

=+ 2. Explain how absolute advantage and comparative advantage differ.

Q:

1. Economics 2. Macroeconomics 3. Scarcity 4. Opportunity Cost 5. Self-Interest 6. Rational Choice 7. Marginal Benefit 8. Marginal Cost 9. Incentives 10. Division of Labor and Knowledge 11. Absolute...

Q:

1. International Trade a. What is comparative advantage, and why is it important in international trade? b. Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their...

Q:

1 . Explain how absolute advantage and comparative advantage differ. ( 2 marks ) 2 . Maria can read 2 0 pages of economics in an hour. She can also read 5 0 pages of sociology in an hour. She spends...

Q:

A $34,000 new car loan is taken out with the terms 3% APR for 48 months. How much are monthly payments on this loan? A. $827.82 B. $903.08 C. $752.57 OD. $978.34

Q:

1. 5. Explain how absolute advantage and comparative advantage differ. Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage....

Q:

2. What is money? What are the functions that money performs in a market economy and what conditions must necessarily exist in order for money to perform these functions? Carefully explain. a....

Q:

A standing wave = a sin kx cos wt is maintained in a homogeneous rod with cross-sectional area S and density p. Find the total mechanical energy confined between the sections corresponding to the...

Q:

1) They are transported in the blood by serum albumin: a) Pyrilipines b) Fatty acids c) Triglycerols d) Monoacylglycerols 2) Which of the following oxidations provides a greater energy yield for the...

Q:

A retail tenant pays percentage rent of 4% over a natural breakpoint based upon a rental rate of $20 per square foot. The tenant leases 4,000 square feet and is estimated to generate $2,500,000 in...

Q:

8.9 Explain several problems that arise when allocated costs are used to charge for support services.

Q:

McCormick Corporation issued a 4-year, $40,000, 5% note to Greenbush Company on January 1, 2011, and received a computer that normally sells for $31,495. The note requires annual interest payments...

Q:

Shlee Corporation issued a 4-year, $60,000, zero-interest-bearing note to Garcia Company on January 1, 2011, and received cash of $60,000. In addition, Shlee agreed to sell merchandise to Garcia at...

Q:

Access the glossary (Master Glossary) to answer the following. (a) What does the term callable obligation mean? (b) What is an imputed interest rate? (c) What is a long-term obligation? (d) What is...

Q:

Describe Artificial Neural Networks ANN? What is meant by ANN architecture? With suitable images explain them.

Q:

A seven-year annuity that makes 14 semiannual payments of $7,600 will begin 5 years from now with the first payment coming 5.5 years from now. If the discount rate is 8.9 percent compounded...

Q:

The population mean and standard deviation are given below. Find the required probability and determine whether the given sample mean would be considered unusual. For a sample of n ~= 6?, nd the...