Why does us have an absolute advantage in both goods

Assignment Help International Economics
Reference no: EM13235114

Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Izodia, which has the same number of workers, each worker can produce 7 units 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?

Reference no: EM13235114

Questions Cloud

What is the beat frequency that is detected by the listener : Two loudspeakers are mounted on a merry-go-round whose radius is 9.01 m. When stationary, What is the beat frequency that is detected by the listener when the merry-go-round is near the position shown
Discuss how perceptual maps can be used : Discuss how perceptual maps can be used to discover challenges and opportunities for a company and search for an illustration of an established company on the internet that uses perceptual maps.
Why dell usually reacts more quickly and more substantially : Dell Computer Corp., the world's largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design
Define what is the pressure in mmhg : The pressure of an unknown gas is measured with a manometer. Instead of mercury the manometer is filled with a liquid (X) whose density is 0.673 g/cc. The pressure is measured as 591 mmX. What is the pressure in mmHg
Why does us have an absolute advantage in both goods : In Izodia, which has the same number of workers, each worker can produce 7 units 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
Explain what is the molar solubility of lead chloride : What is the molar solubility of lead(II) chloride in a solution that also contains 0.15 M Cl- ions at 25 °C? The Ksp of PbCl2 is 1.6 × 10-5.
Design a case structure that tests the month variable : Design a case structure that tests the month variable and does the following
What alterations might have to be made to the product : Martha Stewart Living Omnimedia and Hain Celestial Group have hired you to develop a marketing plan for the purpose of expanding the distribution of their "Martha Stewart Clean" line of eco-friendly cleaning products to the regions of Asia
What is the percent error : A disk of radius 3.00 cm has a uniformly distributed charge of Q = 5.20 uC, Calculate the electric field on the perpendicular axis of disk

Reviews

Write a Review

International Economics Questions & Answers

  Pros and cons of firms competing in global environment

Discuss the pros and cons of firms competing in global environment and how this has affected the United States economy and the global economy?

  Franchises that operate from commerical building

Why might you expect to see flat royalty payments in home based franchises but reveneue based royalities in franchises that operate from commerical building?

  Fairness in foreign trade

If we do engage in foreign trade, should we bound foreign trade to country's that engage in fair trade throgh giving us access to domestic markets and reciprocal import tariff decrease that mirror our tarriff reductions on our imports from them?

  What is the expected inflation rate in the united states

Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year U.S. bond is 4%. Suppose that you expect the exchange rate in one yea..

  Explain effects of tariff if us ere an auto importer

Draw a graph of the U.S. automobile market in which the domestic equilibrium price without trade is Pd and the equilibrium quantity is Q d. Use this graph to illustrate and explain the effects of a tariff if the United States were an auto importe..

  Are educational achievement nd employment status independent

the joint probability distribution between employment status and college graduation among those either employed or looking for work (unemployed) in the working age U.S. population for 2008. Joint Distribution of Employment Status and College Gradua..

  Single product company and multiproduct company

Many corporation manufacture more than one product. What is the motivation to do this and explain how do rules for profit maximization differ between a single product corporation and a multiproduct corporation?

  Diff erence between absolute and relative ppp

What is the diff erence between Absolute and Relative PPP? Which theory requires fewer assumptions and give two reasons why Absolute PPP might not hold in the short-run.

  Leisure as a normal good for the labor supply function

Think the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income.

  Calculate the cash conversion cycle and operating cycle

A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.

  Asset market model and exchange rates.

Suppose the spot exchange rate in dollars and yen is e=$1/100yen. The interest rate on a 6 months dollar denominated assets is i($)=1 percent and interest rate on comparable 6 months yen denominated assets

  Compute the equilibrium levels of b and g

Compute the equilibrium levels of B and G consumed and produced in the Home country under autarky. What is the corresponding value of p?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd