Question

Iceland can produce 32 units of food per person per year or 8 units of clothing...

Iceland can produce 32 units of food per person per year or 8 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?

a.

​ Iceland has a comparative advantage, but not an absolute advantage in producing food.
b.

​ Lavaland has both a comparative and absolute advantage in producing clothing.
c.

​ Lavaland has both a comparative and absolute advantage in producing food.
d.

​ Iceland has both a comparative and absolute advantage in producing food.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Iceland can produce 32 units of food per person per year or 8 units of clothing...
Iceland can produce 32 units of food per person per year or 8 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true? A. Lavaland has both a comparative and absolute advantage in producing food. B. Iceland has a comparative advantage but not an absolute advantage in producing food. C. Iceland has both a comparative and absolute advantage in producing food. D....
1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3...
1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE? Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE? * 1...
If with one unit of labor the U.S. can produce 20 units of computer software and...
If with one unit of labor the U.S. can produce 20 units of computer software and 10 units of computer hardware and China can produce 5 units of software and 5 units of hardware then Select one: A. the United States has a comparative and absolute advantage in both goods. B. the United States has a comparative advantage in both goods. C. China has a comparative advantage in hardware and the U.S. has a comparative advantage in software. D. China...
If Texia specializes in food, it can produce 1,000 units of food and 0 units of...
If Texia specializes in food, it can produce 1,000 units of food and 0 units of clothing this year. Ifit specializes in clothing, it can produce 500 units of clothing and 0 units of food. This year Urbania can produce either 500 units of food and 0 units of clothing or 200 units of clothing and 0 units of food (assume linear production possibility frontiers) a) Texia; Texia b) Texia; Urbania c) Urbania; Texia d) Urbania; Urbania
1. Two countries A and B both produce food and clothing. Country A can produce both...
1. Two countries A and B both produce food and clothing. Country A can produce both food and clothing using fewer resources than B. According to international trade theory A. Country A and B profitably specialize and trade with each other B. Country A and B should specialize in the good for which they each have a comparative advantage and then trade with one another C. Country B should specialize in both goods and trade with country A D. Country...
Peter, Paul, and Mary are in a band. They can each produce two goods: writing songs...
Peter, Paul, and Mary are in a band. They can each produce two goods: writing songs or booking gigs. They have one input, labor. Each person can produce the indicated maximum level, or any combination that lies on a straight line between their two maximum levels. Each person has 4,000 hours of labor. From this information we can conclude that Person Songs (Max Number) Gigs (Max Number) Peter 20 10 Paul 26 5 Mary 16 20 a) Paul has the...
Peter, Paul and Mary are in a band. They can each produce two goods: writing songs...
Peter, Paul and Mary are in a band. They can each produce two goods: writing songs or booking gigs. They have one input, labor. Each person can produce the indicated maximum level, or any combination that lies on a straight line between their two maximum levels. Each person has 4,000 hours of labor. From this information we can conclude that Person Songs (Max Number) Gigs (Max Number) Peter 20 10 Paul 26 5 Mary 16 20 a)Paul has the absolute...
Country A can produce either 10 computers or 30 bushels of apples. Country B can produce...
Country A can produce either 10 computers or 30 bushels of apples. Country B can produce either 8 computers or 16 bushels of apples. Which of the following is true based on the information above? a.) Country B has the absolute advantage in the production of only computers. b.) Country B has the absolute advantage in the production of both computers and apples. c.) Country A has the absolute advantage in the production of only apples. d.) Country A has...
QUESTION 16 ​ Assume that one day's labor in England can produce either 20 units of...
QUESTION 16 ​ Assume that one day's labor in England can produce either 20 units of cloth or 2 units of wine, while in Portugal, one day's labor can produce either 24 units of cloth or 12 units of wine. If England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit of labor from cloth to wine, the increase in combined output by those two workers will be a. ​ 8 wine, 16 cloth b....
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. Graph the production possibilities frontier of the Canadian and Japanese economies. For Canada, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT