Quick Answer: Which Country Has An Absolute Advantage For Producing Books?

Which country has an absolute advantage?

Table 1 illustrates the advantages of the two countries, expressed in terms of how many hours it takes to produce one unit of each good.

In Table 1, Saudi Arabia has an absolute advantage in the production of oil because it only takes an hour to produce a barrel of oil compared to two hours in the United States..

What is absolute advantage example?

One real-world example of absolute advantage is in oil production. Nations in the Middle East have an absolute advantage when it comes to producing oil. In oil-rich nations, businesses can use simple, inexpensive techniques to drill for the resource and get it in large quantities.

What does the US have an absolute advantage in?

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.

Who has the comparative advantage in the production of corn?

Since Saudi Arabia gives up the least to produce a barrel of oil, (¼ < 2 in Table 19.4) it has a comparative advantage in oil production. The United States gives up the least to produce a bushel of corn, so it has a comparative advantage in corn production.

What country has a comparative advantage?

A country is said to have a comparative advantage in whichever good has the lowest opportunity cost. That is, it has a comparative advantage in whichever good it sacrifices the least to produce. In the example above, Switzerland has a comparative advantage in the production of chocolate.

Which country has an absolute advantage for producing books Brainly?

Which country has an absolute advantage for producing books? China.

What is absolute advantage Brainly?

Absolute advantage is having a lower cost of production than other firms or nations. Explanation: When a firm or nation can produce a product or service with less resources, or at lower cost, than oth.

Has an absolute advantage in the production of corn and?

A country has an absolute advantage over another country in producing a good if it uses fewer resources to produce that good. … The United States has some of the richest farmland in the world, making it easier to grow corn and wheat than in many other countries.

What does absolute advantage mean?

Absolute advantage is when a producer can produce a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than other producers.

Who has absolute advantage?

Absolute advantage and comparative advantage are two concepts in economics and international trade. Absolute advantage refers to the uncontested superiority of a country or business to produce a particular good better.

Which country has a comparative advantage in producing computers home or foreign?

Opportunity Cost (cont.) A country has a comparative advantage in producing a good if the opportunity cost of producing that good is lower in the country than in other countries. – The United States has a comparative advantage in computer production.

Does Canada have an absolute advantage?

For example, if Canada can produce 100 pounds of beef using two ranchers, while Argentina needs three ranchers to produce 100 pounds of beef, Canada has an absolute advantage over Argentina in beef production. Absolute advantage can be the result of a country’s natural endowment.

Which country has the absolute advantage in bananas?

Honduras2 Point-Honduras has an absolute advantage in bananas 1 Points-Explanation: Since they can produce more output with the same resources they have an absolute advantage.

Which country has an absolute advantage in the production of machines?

(a) Luna had an absolute advantage in the production of machines because it can produce more machines using the same amount of resources. That is, with the same resources, it can produce 40 machines while Ashna can only produce 10.

Which country has a comparative advantage for producing cups?

Agrabah has the absolute advantage in producing cups because 50>20. h. To have comparative advantage means to have lower opportunity cost. Thus Agrabah has a comparative advantage in carpets since 1/4 is less than 4/5.