Explain this difference between absolute advantage and
comparative advantage. If a country has an absolute advantage in
everything, can it still benefit from trade? Why or why not?
Explain comparative advantage and how it differs from absolute
advantage. Use the drawing tools (from the insert shapes
menu) to show an example with straight lines for the PPFs and lines
for possible trades to let both countries consume above their PPFs
(just as in the online version of the text).
Explain comparative advantage and how it differs from absolute
advantage. Use the drawing tools (from the insert shapes
menu) to show an example with straight lines for the PPFs and lines...
What does absolute advantage mean? How do you calculate absolute
advantage? What does comparative advantage mean? How do you
calculate comparative advantage? Does a country with the absolute
advantage in the production of a good always have the comparative
advantage producing that good? Explain your reasoning.
Explain the difference between absolute advantage and
comparative advantage. Which is the basis for international trade,
and why? (Please Type Answer, No Handwriting)
What is absolute advantage in trade theory?
What is the comparative advantage on international trade?
How does absolute and comparative advantage lead to
specialization?
What are the benefits of comparative advantage?
Calculations:
The following represents the production possibilities in the
following two countries.
Canada
Mexico
Good X
Good Y
Good X
Good Y
0
32
0
24
4
24
4
18
8
16
8
12
12
8
12
6
16
0
16
0
(a)
Which country has a comparative advantage...