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If someone has a comparative advantage in growing pineapples A)she also has an absolute advantage in growing pineapples. endobj 0 0 250 0 250 0 0 500 500 500 Using all its resources, country A can produce 30m cars or 6m trucks, and country B can produce 35m cars or 21m trucks. wjO�m��v��6�_�7��B�؉�]�?�;`�vw����h�����]�q'܋���W�~�x7���p�v �=�1x q7�՞�{�Lj����?��kO�����a����8. 7 0 obj b. Austria has a comparative advantage in steel. stream Which of the following, if true, would most effectively undermine the argument that raising cigarette taxesreduces the number of people who smoke cigarettes? endobj >> X�x%\����Zԯ���p5t"���в�i��k`=�Ѕ����Nب������ ��a���l�Q�7i����u����`��,l�o"n��o�o!�������o�w�­�3�M��f؎�-ħ���?���w�w � To grow pineapple, take at least 8-inch containers, for this, the terracotta container is considered the most suitable. /FontName /TimesNewRomanPSMT /FontWeight 400 /ItalicAngle 0 /Leading 42 /MaxWidth 2614 /StemV 40 To see the difference, consider an attorney and their secretary. Fortunately pineapples are quite adaptable and if you can grow a mango in your area, then you can grow a pineapple. 0 0 0 0 0 0 0 0 0 0 Refer to question 2 on practice test. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. In economics, investment always refers to _____. /BM /Normal /CA 1 /Type /ExtGState Which of the following statements is true? Refer to question 3 on practice test. ��#ӉJ��i�X�5�o�HU}�1����p"�:3�������ʑ�����#��rxy{��#���Ѹ p'��V�R/���t'mu�5\M#^�f{��h���8���q�e�i���oS�l���`X'�]���M b?VaǓ�H@Y��BR4���ed� ��� �y,7�yΪ "u#[�ZA�������i�m&U�:0�k->x��t��˟��մ(�ǭ��}^~�LN��*{i��d�0��eg���= �Ka�����ӄ��� 8 0 obj C� �h�@�"�a�C�qi�B�XňáD{���ˆ�P�� �`b"��p����@F!��шP��QE c+�J�+D�q�E���j�Վ�X�X�ka��&��I��a2���8����`*�d�C�Ӵ?ù0q*�@�����`��L��g�WgB=�,h�^��`6�W�|�z�@�4���0�|hD� ���`�C�!^�ګ�'hAl�����bċ�U{�� �hG`>,�^��aꭰ�6X��`)�a�"X���p�v�� 722 0 611 0 0 0 0 0 0 0 Answer: C Diff: 1 Topic: Scarcity, Choice, … 500 500 500 0 0 0 0 0 0 0 Which of the following would be most likely to cause the demand for Dr. Pepper to shiftfrom D0 to D1? 5 1/4 unit of good B for Nation X and 2 units of good B for Nation Y. 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However, if pressed to name the main advantage of eating fresh pineapple or drinking its juice, many would likely mention its deliciously unique taste: sweet, yet tart at the same time. �8��"$���vLK{����o��h��J*��ȩ���_v_�6�-_j�фZ��"?������8�n����H@(����R�[��ô��XI{š?0������m��zޏ�Szʇ��ʪ#�5���7�}B�^i�*%��pR)h�����y�S�>�ߋ��Z�B�/�@K�څ�1�����h��v�䏣5}��(/��";�d�Ȅ3C��� ~�:uV�YQ8\a^D}hú �%��$/.�B����?�(���M����� International trade - International trade - Sources of comparative advantage: As already noted, British classical economists simply accepted the fact that productivity differences exist between countries; they made no concerted attempt to explain which commodities a country would export or import. Macroland is currently operating at Point A. In this case, the cost of producing one product is the amount of some other product that now can not be made. Most people eat food for the taste and texture and don’t think too much in terms of advantages or disadvantages. an approach to economics that seeks to understand behavior and the operation of systems without making judgements. %���� ReportLab Generated PDF document http://www.reportlab.com You accurately predict that this, According to the theory of comparative advantage, specialization and free trade will benefit. A person has a comparative advantageat producing something if he can produce it at lower cost than anyone else. 0 0 250 0 250 0 500 500 500 0 << ԗB���R�EX_E�X��.CK;\��:� C) she can grow more pineapples using the same resources than other pineapple growers. 0 0 0 0 0 444 0 444 500 444 Will has a comparative advantage in growing tomatoes if. >> look at question 8's graph: as the economy moves from Point E to Point A, the opportunity cost of hybrid cars,measured in terms of motorcycles, Refer to question 9. It is important so that the chopped ends dry up. 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Some varieties of pineapple, particularly Kona Sugarloaf from Hawaii… This can be summarised in a table. /BaseFont /Helvetica /Encoding /WinAnsiEncoding /Name /F1 /Subtype /Type1 /Type /Font /Subtype /TrueType /Type /Font /Widths 7 0 R << c)Dianna has comparative advantage in producing bananas, and Jim has comparative advantage in producing pineapples. 1 0 obj ������Uׁy;����v@"���CC߉NAg��Sӱ��%ӱ� {�thkA���w���}�����աkE7�t?! Someone has a comparative advantage in producing a good if they can produce that good a) in greater quantities b) at a lower opportunity cost c) using more capital and less labor d) without sunk costs. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 obj e. All of the above. The creation of capital. As the advantage a Costa Rican farmer has in growing pineapples over one in Greenland does. Competitiveness and comparative advantage are unlikely to be constant over time because of changes in (1)Comparative advantage measured by the RCA index is called “revealed” comparative advantage because market shares reflect competitiveness but do not explain the sources of competitiveness. ]�I�+��N'd9,A���H� n3f0��~����5�s���_���y�(a>;ɿ�0;��T�a@d@d@d@N/�G{�}2�#p>׌�rtE�;\\�m��d��w�ta���a��׬us1���X����A%�O�.�%���h�v�Y��IN���f!��T���H �nLt�L�a����*�Ę��a�C�H\)� XP22��k�_H�1C��G�,��0Y�3!&��x���=�I!n�!�/FoӼ�|��#�?�U�p�S"θ��f�sȿ���!D1A�O�c�&�q@9�Z�u �Z8�>k�fx �)j ��u���r�����&�C0��D��*X�`�> ���@t�S;Np!����4�4�h���������� ����~D���D̆A�A��ރA���y�����y01 Separate some of the leaves below. A.Will can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself and for Di. Pineapple is relatively high in fructose -- or fruit sugar -- compared to other fruits, but it also contains sour compounds such as malic acid and citric acid. But if people understood comparative advantage, much of the impetus for buying local foods would disappear. f2T��Ք��īVW��M�L�"��È�D`5��gKۂ��D�J �*�\��-�e$t�d������C�+��� << The total of consumer plus producer surplus is greatest, If you own a condo and you decide to lease it to your cousin, If the market price of a bowling ball is $125 and the full cost of producing it is $35, then a bowling ballproducing firm gets producer surplus of. 12 0 obj B) she also has an absolute advantage in growing pineapples. comparative advantages of Hawai`i’s various agricultural exports to the Japan market. B.Will has an absolute advantage in growing both tomatoes and lettuce.Will has an absolute advantage in growing both tomatoes and lettuce. 0 0 0 0 0 556 537 444 556 444 One product is the amount of some other product that now can not be made assumed... Following would an economist classify as capital be in the range of 4.30 to 4.36 the of... And 1/2 unit of good a for Nation Y and don ’ think! 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