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. A) They have equal productive abilities B) Tahiti C) Bora Bora D) neither country Which country has a comparative advantage in the production of honey? A.Will can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself and for Di. A government wants to reduce electricity consumption by 10%. Which of the following statements is true? Pineapples are susceptible to rot, so leave stalks few days to dry. %���� ReportLab Generated PDF document http://www.reportlab.com endobj ������Uׁy;����v@"���CC߉NAg��Sӱ��%ӱ� {�thkA���w���}�����աkE7�t?! 500 0 0 0 0 0 0 0 0 0 << What we're going to see is if both of these parties specialize in their comparative advantage and then trade, they can get outcomes that are beyond each of their individual production possibility frontiers. Comparative advantage. [ 250 0 0 0 0 0 0 0 0 0 E������WA�}u���'��paU�Q e9+�c��A��n�ږ�xw�z��휉�9̧��Xۍ�ű}����I]O�o'bzT}�����qqff�����;={O!���5n}|ԝ�f�?�^������l��Tj����ZE]]��/Ԁ�R�:Y���� /BaseFont /BCDFEE+PalatinoLinotype-BoldItalic /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 11 0 R /LastChar 119 /Name /F3 >> /Font << The demand for Pokemon cards describes how the quantity demand changes when the price of Pokemon cardschanges. comparative advantages of Hawai`i’s various agricultural exports to the Japan market. C) japan has a comparative advantage in technology because they are more advanced and have more scientists. endobj 0 0 0 0 0 667 0 611 0 0 �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����� /FontFile2 12 0 R /FontName /BCDFEE+PalatinoLinotype-BoldItalic /FontWeight 700 /ItalicAngle -10 /MaxWidth 1461 /StemV 44 << Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products. A) Tahiti B) Bora Bora C) They have equal productive abilities. << endobj >> /BBox [ 0.0 0.0 612.0 792.0 ] /Filter /FlateDecode /FormType 1 /Length 1785 /Resources << 4 4 units of good A for Nation X and 1/2 unit of good A for Nation Y. 333 500 556 333 0 0 333 833 556 556 /GS7 5 0 R /GS8 4 0 R 2 the Macro Islands have an comparative advantage in producing sun glasses. The firmness of pineapple fruits measured in outside and inside to be 0.21 to 0.27 N/m 2 and 0.06 to 0.10 N/m 2 respectively. Which of the following are parts of a typical economic model? A person has a comparative advantageat producing something if he can produce it at lower cost than anyone else. Someone who is the best at doing something is said to have an absolute advantage.Lance Armstrong has an absolute advantage at cyclin… 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. Refer to question 2 on practice test. [ 250 0 0 0 0 0 0 0 0 0 endobj It used to be that Hawaii was the chief place to grow pineapples, and large areas of land were covered by pineapple farms, on five of the eight main islands, including Maui, Lanai, Molokai, Oahu, and Kauai. To see the difference, consider an attorney and their secretary. ]>�cՉ��dh��+�X��e1"�Jz�+������s�B(E�8}��۾{�W7&¾��;t��>��M~K��*R?rY�G ��+���b� 0�E75p�I��ĕ7���(����.�����V�Kj�If\��/(������@�ӋGj�1�>2�o��,p��g���;f C)pineapples are the only product she can grow. How can that happen? << b. Austria has a comparative advantage in steel. When the price of fresh fish increases 10%, quantity demanded decreases 5%. ԗB���R�EX_E�X��.CK;\��:� 0 0 0 0 0 556 537 444 556 444 5 1/4 unit of good B for Nation X and 2 units of good B for Nation Y. Absolute and Comparative Advantage Absolute Advantage • The producer that can produce the most output OR requires the least amount of inputs (resources). When the tomatoes are ripe and the price is right, we, the two authors, enjoy local food. << 500 0 333 389 278 500 0 0 0 500 DVDs and DVD players are complements. Using all its resources, country A can produce 30m cars or 6m trucks, and country B can produce 35m cars or 21m trucks. 0 0 0 0 0 0 0 0 0 0 c)Dianna has comparative advantage in producing bananas, and Jim has comparative advantage in producing pineapples. In this case, the cost of producing one product is the amount of some other product that now can not be made. Separate some of the leaves below. Because resources are scarce, the opportunity cost of investment in capital is, The reason that opportunity costs arise is that, Because resources are not equally well suited to producing all goods, Refer to question 16. %PDF-1.3 Which is assumed to be constant as the price of Pokemon cards changes? 8 0 obj 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. B.Will has an absolute advantage in growing both tomatoes and lettuce.Will has an absolute advantage in growing both tomatoes and lettuce. Hawai‘i has stronger comparative advantage in competitiveness to one another. comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in Kiwifruit. If someone has a comparative advantage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. Most people eat food for the taste and texture and don’t think too much in terms of advantages or disadvantages. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. [�Ag��L�D�+f�+5uhR�Ս��>���g}5N��B��ݓ۴���be�83�&@��6�L�J=��~y�A�����G��Ŧ�g� kdb\�1����*�r�y�Hk �w�eݠ��2���*�YX�wo��^JxȈc��~>Q�w�$�_a����e�7�A << Some students really struggle with the idea of calculating opportunity cost and finding the comparative advantage. B) she also has an absolute advantage in growing pineapples. 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�� Answer: B 19) If someone has a comparative advantage in growing pineapples, 19) A) they can grow pineapples at a lower opportunity cost than other pineapple growers. 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