1.Explain the concept of comparative advantage.

2.Why does it make sense to specialize in something you have a comparative advantage and trade for items you do not have a comparative advantage in?

3.What are some of the things you think the United States has a comparative advantage in? Explain your reasoning.

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OC4218648Lv10

11 Dec 2021

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9 Jul 2019

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Related questions

3.In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios.

3-1)Who has the absolute advantage in the production of rubber or radios? How can you tell?

3-2)Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine.) Which country has a comparative advantage in the production of radios?

3-3)Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber?

3-4)In this example, does each country have an absolute advantage and a comparative advantage in the same good, or not?

3-5)In what product should Japan specialize? In what product should Malaysia specialize?

1.1(Comparative Advantage) Suppose that each U.S. worker produces 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7units of food or 1 unit of clothing daily.
Why does the United States have an absolute advantage in both goods?
Which country enjoys a comparative advantage in food? Why?