- What country has a comparative advantage?
- Which situation is the best example of opportunity cost?
- Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage explain?
- Does the US have an absolute advantage?
- What does Canada have an absolute advantage in?
- What does China have an absolute advantage in?
- What does US have comparative advantage in?
- What does Japan have a comparative advantage in?
- What is an example of a comparative advantage?
What country has a 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..
Which situation is the best example of opportunity cost?
It is the important concept in economics and also the relationship which is between choice and scarcity. A good example of opportunity cost is you can spend money and time on other things but you can not spend time reading books or the money in doing something which can help.
Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage explain?
It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods. An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.
Does the US have an absolute advantage?
Production Possibilities and Comparative Advantage The United States has an absolute advantage in productivity with regard to both shoes and refrigerators; that is, it takes fewer workers in the United States than in Mexico to produce both a given number of shoes and a given number of refrigerators.
What does Canada have an absolute advantage in?
Absolute advantage & Comparative advantage Canada has an absolute advantage in agricultural production and mining activities due to low cost land. Due to availability of vast land and natural resources Canada also has absolute advantage on gold and crude oil.
What does China have an absolute advantage in?
China and Consumer Electronics: Many consumer electronics are manufactured in China. China can produce such goods more efficiently, which gives it an absolute advantage relative to many countries.
What does US have comparative advantage in?
The United States’ comparative advantage is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs.
What does Japan have a comparative advantage in?
Since Japan’s opportunity cost is lower, Japan has comparative advantage on fish production and will export fish. The comparative advantage of cloth is found the same way. China’s comparative advantage is on cloth production because China has a lower opportunity cost.
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.