Describe the comparative and absolute advantages between US and china.

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Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Students have asked these similar questions

Suppose that a worker in Country A can produce either 6 units of corn or 2 units of wheat per year, and a worker in Country B can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Country A produces and consumes 30 units of corn and 10 units of wheat per year. Country B produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Country A sends 30 units of corn to Country B in exchange for 30 units of wheat. Country A will now be able to consume a maximum of Select one: a.30 units of corn and 30 units of wheat. b.40 units of corn and 20 units of wheat. c.40 units of corn and 30 units of wheat. d.10 units of corn and 40 units of wheat.

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.

With its given resources, Nicaragua can produce either 20 thousand pounds of chicken or 80 thousand pounds of quinoa per year. Costa Rica can produce either 100 thousand pounds of chicken or 200 thousand pounds of quinoa per year. Suppose the countries completely specialize and they decide to trade 14 thousand pounds of chicken for 42 thousand pounds of quinoa. After trade, Nicaragua will consume thousand pounds of chicken and thousand pounds of quinoa. After trade, Costa Rica will consume thousand pournds of chicken and thousand pounds of quinoa. Round to the nearest whole number.

Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 6

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 7

Chapter 16, Problem 1RQ

To determine

Describe the comparative and absolute advantages between US and china.

Answer 8

Expert Solution & Answer

Explanation of Solution

The US has absolute and comparative advantages in designing a new model. This is because the US workers only take a quarter of time than Chinese workers to design a new model. Also, the US has the absolute advantage in the production of a new model and Chinese has the comparative advantage. This is because the US only takes half of time than Chinese workers to produce a new good and the Chinese workers produces a million piece of the new model.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Absolute advantage: Absolute advantage is an advantage of a country to produce more than its competitors using the same or less production time and resources.

Comparative advantage: Comparative advantage is an advantage of a country to produce at a lower opportunity cost than its competitors.

Answer 12

Ch. 16.A - Prob. 1P Ch. 16.A - Prob. 2P Ch. 16.A - Prob. 16A.1CC Ch. 16 - Prob. 1RQ Ch. 16 - Prob. 2RQ Ch. 16 - Prob. 3RQ Ch. 16 - Prob. 4RQ Ch. 16 - Prob. 5RQ Ch. 16 - Prob. 6RQ Ch. 16 - Prob. 7RQ

Describe the comparative and absolute advantages between US and china.

Concept explainers

Describe the comparative and absolute advantages between US and china.

Explanation of Solution

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