As per Ricardo, a nation has a comparative advantage in the production of a commodity in which it has Select one: a) Greater disadvantage b) Lesser disadvantage c) Greater advantage d) Lesser advantage e) Equal advantage
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As per Ricardo, a nation has a
Select one:
a) Greater disadvantage
b) Lesser disadvantage
c) Greater advantage
d) Lesser advantage
e) Equal advantage
Step by step
Solved in 3 steps
- Ecuador’s biggest export is crude petroleum (unprocessed), 63% of which it exports to the United States, and Ecuador’s biggest import is refined petroleum (processed), of which it imports 70% from the United States. Based on this information, which of the following statements is true? Group of answer choices Ecuador has comparative advantage in extracting crude petroleum; the US has comparative advantage in producing refined petroleum. Not enough information. The US has comparative advantage in extracting crude petroleum; Ecuador has comparative advantage in producing refined petroleum. Ecuador has absolute advantage in extracting crude petroleum and the US has absolute advantage in producing refined petroleum.A country will have comparative advantage, accounting to Ricardo (A) industries that sell to domestic and foreign buyers (B) industries that sell to only foreign buyers (C) import competing industries (D) industries in which there are imports nor exportsAn examination of the Ricardian model of comparative advantage yields the clear result that trade is (potentially) beneficial for each of the two trading partners since it allows for an expanded consumption choice for each. However, for the world as a whole the expansion of production of one product must involve a decrease in the availability of the other, so that it is not clear that trade is better for the world as a whole as compared to an initial situation of non-trade (but efficient production in each country ?
- Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (g) If the terms of trade is 2 to 1 in favour of the country with the comparative advantage in food. Determine the combination of the two goods that each country will consume after trade if the country with the comparative advantage in fuel imports 4000 units of food. Label this point B and B* respectively. h) Who gains from trade? Who loses? What is the impact if any on the world? (i) What should the terms of trade be to make trade beneficial for BOTH Japan and Peru? Explain.Freedonia has a comparative advantage in the production of (grain, tea, neither grain nor tea, both grain and tea), while Desonia has a comparative advantage in the production of (grain, tea, neither grain nor tea, both grain and tea). If each fully specializes that is, produces only the good for which each has a comparative advantage, the most the two countries can produce is ( )million pounds of grain and ( )million pounds of tea. As you did for Freedonia, use the green line (triangle symbol) to plot the trading possibilities line (TPL) for Desonia. Then place the black point (plus symbol) on the trading possibilities line to indicate Desonia’s consumption after specialization and trade. True or False: Without engaging in international trade, Freedonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: Base your answer to this question on the answers you previously entered on this page.) a) True b) FalseIn 2017, Ecuador's biggest export was crude (unprocessed) petroleum, 63% of which it exported to the United States, and Ecuador's biggest import was refined (processed) petroleum, of which 70% was imported from the United States. What does this tell you about the countries' comparative advantages in extracting petroleum and refining petroleum? This information suggests that has a comparative advantage in refining petroleum, and the United States must I ntage in extracting petroleum. Ecuador
- The principle of comparative advantage states that countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners. True FalseWhat is the viewpoint of Ricardo regarding the Comparative Difference in Costs?Heckscher-Ohlin model According to the Heckscher-Ohlin model, Brazil will have a comparative advantage in oranges if the factors blank in the production of oranges are blank. (a) intensive; abundantly available (b) intensive; imported from other nations (c) that are scarce; imported from other nations (d) intensive; inexpensive
- a)Identify an example of absolute advantage relative to the United States from your data tables. Be sure to identify which country has absolute advantage (U.S. or other), the product, and data to support your claim. Tip: When considering absolute and comparative advantage, worker hours to produce one unit is a reflection of productivity. b)Identify an example of comparative advantage relative to the United States from your data tables. Be sure to identify which country has comparative advantage (U.S. or other), the product, and data to support your claim. c) Explain why most trade occurs because of comparative advantage. Be sure to provide examples from the data tables or from the lesson to support your answer.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. The following graphs show the production possibilities frontiers (PPFs) for Candonia and Sylvania. Both countries Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. produce lemons and coffee, each initially (i.e., before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of coffee, as indicated by the grey stars marked with the letter A. Candonia has a comparative advantage in the production of lemons, while Sylvania has a comparative advantage in the production of coffee. Suppose that Candonia and Sylvania specialize in the production of the goods in which each has a comparative…country, X has a comparative advantage in producing game console. Suppose recently, the Education Department of Country X has banned all her residents from playing video games with game consoles. One Key-Opinion Leader (KOL) claims that “Since we don’t need game consoles anymore, we should stop producing game console at all. We should put the resources in producing wheat instead”. Given your above answers, explain whether you agree with the claim of the KOL.