nation x has a comparative advantage in the production of a product compared to nation y when:

What does it mean when a country has a comparative advantage in the production of a good compared to another country?

Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners. … Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in.

What does it mean when we say that a country has a comparative advantage in producing a product?

A comparative advantage exists when a country can produce goods at a lower opportunity cost compared to other countries. It is not possible for a country to have a comparative advantage in all goods.

When a country has a comparative advantage in the production of a good it means that it can produce quizlet?

A country has comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country. the difference between the opportunity cost of producing the product domestically versus the cost of purchasing the product from another country receives from trade.

What does it mean to have a comparative advantage in the production of something?

A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something. In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it!

When a nation has a comparative advantage in the production of a particular good?

A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods. Countries that specialize based on comparative advantage gain from trade.

What is the comparative advantage of the Philippines in international trade?

The Philippines has a revealed comparative advantage in exporting from high technology industries. They constitute more than 50 percent of total goods exports, and they were affected during the global financial crisis.

How do countries know when they have a comparative advantage in the production of a good?

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.

When a person has a comparative advantage in producing a good or service the person has?

Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another. Even if one country has an absolute advantage in producing all goods, different countries could still have different comparative advantages.

What countries have comparative advantage?

For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.

When a nation has a comparative advantage in the production of a particular good quizlet?

What do economists mean when they say a country has a comparative advantage in the production of a particular good? That the country can produce the good at a lower opportunity cost than other countries. Based on the production schedule below, who has a comparative advantage in clams? You just studied 15 terms!

Who has the comparative advantage in the production of good a quizlet?

A producer has a comparative advantage in the production of a good if that producer can produce the good using fewer inputs than other producers. You just studied 8 terms!

Which country has a comparative advantage in the production of shirts?

The United States has the comparative advantage in making shirts. In the United States, the opportunity cost of making one shirt is giving up 1/3 boot, but Canada’s opportunity cost of making 1 shirt is 1 boot.

What is an example of a comparative advantage?

Comparative advantage is what you do best while also giving up the least. For example, if you’re a great plumber and a great babysitter, your comparative advantage is plumbing. That’s because you’ll make more money as a plumber.

Who has comparative advantage example?

For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.

What does it mean for a nation to have an absolute advantage in the production of a good quizlet?

if a nation has an absolute advantage in the production of a good, it can produce that good using fewer resources than its trading partner. If a nation has a comparative advantage in the production of a good, it can produce that good at a lower opportunity cost than its trading partner.

Which country has a comparative advantage in the production of honey?

The United States has a comparative advantage in the production of honey and Canada has a comparative advantage in the production of maple syrup.

What is comparative advantage quizlet?

What is a comparative advantage? Comparative advantage refers to the ability to produce goods and services at a lower opportunity COST, not necessarily at a greater volume. … Its opportunity costs of producing goods at a lower than those of its trading partners.

How do you identify comparative advantage?

To calculate comparative advantage, find the opportunity cost of producing one barrel of oil in both countries. The country with the lowest opportunity cost has the comparative advantage.

What are the advantages of the Philippines?

Various descriptions to illustrate the country’s advantages are the country’s strategic location, hardworking and English-speaking people, continuous infrastructure for global growth, democratic government, liberalized economy, etc.

What is the competitive advantage of Philippine tourism?

As the Philippines has a natural competitive advantage in tourism because of the warmth of its people and its natural wonders that are yet to be fully harnessed, the government recognizes tourism as a major contributor to the generation of foreign exchange earnings, investments, and revenues, and to the growth of the …

What are the advantages of world trade open in the Philippines?

A primary benefit gained from participating in the WTO is that trade liberalization takes place on a multilateral basis. This means that the opening of the Philippine market would be compensated by the opening up of all other member-countries’ markets.

What does it mean for a nation to have an absolute advantage in the production of a good?

Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than its competitors.

What happens when countries specialize according to their comparative advantage quizlet?

According to this theory, if countries specialize in and export the goods in which they have an absolute advantage (can produce with fewer resources), there results an improvement in resource allocation and increased production and consumption in each country. … Forms the basis of the theory of comparative advantage.

Which country has the comparative advantage in oil production?

Because Saudi Arabia produces oil very cheaply, it holds a comparative advantage in oil, and it exports oil in order to finance its purchases of imports.

What are sources of comparative advantage?

In this chapter, we consider the major sources of comparative advantage: differences in technology, resource endowments, and consumer demand; and also, the existence of government policies, economies of scale in production, and external economies.

What products the US has a comparative advantage?

The United States has a revealed comparative advantage in exporting capital goods, chemicals, miscellaneous goods, plastics, rubber and transportation.

Which country has a comparative advantage in the production of cotton?

The study showed that Pakistan has comparative advantage in cotton production and can well competes in open market.

In which situation does one country have a comparative advantage over another country quizlet?

one country has comparative advantage over another in the production of a particular good relative to other goods if it produces that good less inefficiently (more efficiently) compared with the other country.

Which country has absolute advantage and which has comparative advantage in wheat production?


nation x has a comparative advantage in the production of a product compared to nation y when:



Back to top button

Related Post

what components of an ecosystem are not part

The abiotic factors include water, air, rocks, and sunl...

when do chromosomes form tetrads

When Do Chromosomes Form Tetrads? Where do chromosome...

what does not for human consumption mean

The consumption function is a relationship between curr...

where is jesus christ tomb

And yes, Jesus did, in fact, have a Stand in the Steel ...

Explain How Seafood Watch Promotes Environmen

Explain How Seafood Watch Promotes Environmentally Resp...

what is the definition of vegetation

What is the best definition of vegetation? Definition o...

why did the united nations world food program

Why did the Zambian government reject the food aid from...

what happens to the surface area of exposed r

What Happens To The Surface Area Of Exposed Rock If A R...

what am i in spanish

what am i in spanish

= beautiful, pretty, lovely. linda. = cute, pretty, lov...

what is unusual about uranus axis of rotation

what is unusual about uranus axis of rotation

What Is Unusual About Uranus Axis Of Rotation? Unlike t...

what temperature does ice melt at

The ice melting point is 0 degrees Celsius or 32 degree...

how to pronounce zhou dynasty

How is Zhou pronounced? In standard Chinese, it is pron...

what does taj mahal mean in english

What Does Taj Mahal Mean In English? What does Taj Ma...

where to buy galileo thermometers

Galileo’s Telescopes The basic tool that Galileo use...

what do the colors of stars mean

What Do The Colors Of Stars Mean? Summary. Stars exist ...

why did saber tooth tigers become extinct

Why Did Saber Tooth Tigers Become Extinct? Smilodon die...

how did slavery impact the social structure o

How did slavery affect the social structure of the Sout...

what is the driving force of oceanic and atmo

What Is The Driving Force Of Oceanic And Atmospheric Ci...

what is the difference between a marsh and a

What Is The Difference Between A Marsh And A Swamp? Bot...

what are marine fossils

Terlinguachelys (Cretaceous sea turtle) Other ammonites...

how to write 23 in spanish

English Spanish Second Segundo Third Tercero Four...

why are the andes mountains important

Why Are The Andes Mountains Important? The Andes is the...

where were most of the nation’s e

Where were most early factories built? The first U.S. f...

how rapidly a planet loses its atmosphere dep

It has to be a comfortable distance away from a star (H...

What Makes A Biome?

Altitude. Different plants grow at different temperatur...

what is air pressure measured in units

Humidity 88 % Air pressure 1018 hPa Clouds 80 % C...

Why Did The Plantation System Developed In Vi

Shirley Plantation is an estate located on the north ba...

how to pronounce mound

How do you pronounce mounds? What is the mound meaning...

why is the sun the ultimate source of energy

Why Is The Sun The Ultimate Source Of Energy For All Ca...

what is the difference between background ext

What Is The Difference Between Background Extinction An...

Leave a Comment