What are comparative and absolute advantage? Why is comparative advantage, in your opinion, relevant for international trade?

Fantastic news! We've Found the answer you've been seeking!

Question:

Related Book For answer-question

Principles of Economics

ISBN: 978-1285165875

7th edition

Authors: Gregory Mankiw

Posted Date: Mar 06, 2024 04:38 AM

See More Questions

MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
4. Discuss the risks/contingencies that you will face as you attempt to achieve your Financial Goal through the implementation of your Financial Plan and how you plan to protect yourself from the...
In 1 year, the U.S. can produce 10 units of computer software or 5 units of computer hardware. In 1 year, China can produce 3 units of software and 3 units of hardware. Based on this information, a....
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
John enjoys ordering out for pizza and renting movies online. He makes $30 each week at a part-time job. If movies cost $2 per rental, and pizza costs $7.50 per slice, graph John's budget constraint....
Write a mechanism for the following reaction. (PhCO2)2, heat + CO
What is the mirror-image rule?
In the spring of 2013 the Caswell Publishing Company established a custom publishing business for its business clients. These clients consisted principally of small- to medium-size companies in Round...
Contemporary psychoanalysis has undergone a paradigm shift from drive reduction to the relational model. The most fundamental difference between relational and classical forms of psychoanalysis is...
Zek Ltd assembles heavy industrial switchboxes. Hitherto, Zek Ltd has assembled only one type, but recently a decision was made to expand the product range into two types. The following data pertains...
If a company has current assets of R10 000, fixed assets of R30 000, current liabilities of R2 000 and long term liabilities of R5 000, what would the company's debt ratio be? Also comment on whether...
Provide concise, detailed, well-formulated, grammatically correct, and supported answers for the questions below. Use no more than one page per answer A spawned process (child) may proceed...
14. What are the four basic differences between TCP and UDP TCP UDP
District Attorneys have decided not to prosecute drug and property crimes. Do you believe this policy is good or bad for criminal justice agencies? Please explain in details.
Why do we need regulation? What goals does the regulation aim to achieve? Texas has a deregulated electricity market. When the demand for electricity far exceeds the supply during the power outage,...
Can you describe the light OS and tiny OS, like what is there functions and purpose and how they are useful. And what is a goal it can achieve and what type of project could be done with it. (Give a...
If 4u(t 5) = d/dt (x(t)), what is the function x(t)?
The following table shows the rates of total return in successive years from 2004 to 2008 for the Sprott Canadian Equity Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By...
Multiple Choice Questions 1. When the Federal Reserve increases the money supply, it __________ aggregate demand and moves the economy along the Phillips curve to a point with __________ inflation...
Multiple Choice Questions 1. A firm is a natural monopoly if it exhibits the following as its output increases: a. Decreasing marginal revenue b. Increasing marginal cost c. Decreasing average...
Multiple Choice Questions 1. An economic model is a. A mechanical machine that replicates the functioning of the economy. b. A fully detailed, realistic description of the economy. c. A simplified...
Sumitomo Cable manufactures various types of aluminum and copper cables which it sells directly to retail outlets through its distribution channels. The manufacturing process for producing cables...
The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair. Classify each cost item (AI) as...
The following data are for Marvin Department Store. The account balances (in thousands) are for 2017. 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income...

What are comparative and absolute advantage? Why is comparative advantage, in your opinion, relevant for international trade?

Question:

Expert Answer:

Comparative advantage and absolute advantage are both concepts in economics that describe the ability of a country individual or firm to produce a goo... View the full answer

Principles of Economics

Students also viewed these economics questions