Is Shawn can produce donuts at a lower opportunity cost than sue?
Question: If Shawn Can Produce Donuts At A Lower Opportunity Cost Than Sue, Then Shawn Has A Comparative Advantage In The Production Of Donuts. Shawn Should Not Produce Donuts. Sue Has A Comparative Advantage In The Production Of Donuts.
When can two countries gain from trading two goods?
When can two countries gain from trading two goods? the combinations of output that an economy can produce. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced. consume more goods than we otherwise would be able to consume.
Which of the following combinations of wheat and beef could Andrea produce in one 8 hour day?
24 bushels of wheat and 64 pounds of beef. Refer to Table 3-4. Which of the following combinations of wheat and beef could Andrea produce in one 8-hour day? 60 coolers and 18 radios.
Who has an absolute advantage in producing wheat?
Canada has an absolute advantage in both goods. This is because Canada can produce more of both goods compared to Japan using one unit of resources. Canada has a comparative advantage in the production of wheat because she has a lower opportunity cost in the production of wheat.
Which country has an absolute advantage in the production of cloth?
Country B
Can neither country has a comparative advantage?
A comparative advantage exists when a country can produce goods at lower opportunity cost compared to other countries. 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.
Why do economists believe it is better to trade than to remain self sufficient?
The theory of comparative advantage states that there are gains from trade if countries specialize and optimize their opportunity costs. (Boundless, 2016 ) Engaging in trade is better than trying to be self-sufficient because of limited resources and being less expensive.
Who has an absolute advantage in mowing the lawn?
LeBron James