1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
viktelen [127]
3 years ago
10

"(Absolute and Comparative Advantage) You have the following information concerning the production of wheat and cloth in the Uni

ted States and the United Kingdom: Labor Hours Required to Produce One Unit A.The United Kingdom The United States Wheat 2 1 Cloth 6 5 What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States? Which country has an absolute advantage in producing wheat? In producing cloth? Which country has a comparative advantage in producing wheat? In producing cloth? Which country should specialize in producing wheat? In producing cloth?"
Social Studies
1 answer:
iren [92.7K]3 years ago
5 0

Answer:

• opportunity cost is the best alternative forgone when an item or activity is chosen, otherwise thought of as opportunity lost.

The opportunity cost of producing a unit of wheat in the United Kingdom is one third to the production of cloth. In the case of taking one hour to produce one unit of wheat or six hours to produce one unit of cloth, the opportunity the production of three units of wheat to one unit of cloth. The opportunity cost of producing a unit of wheat in the United States is one fifth the production of cloth. By the same standards, producing one unit of wheat occurs faster than producing one unit of cloth and yields five units of wheat to one unit of cloth.

• Absolute advantage is the ability to make something using fewer resources than other producers use.

In this case, the United States has the absolute advantage producing wheat because they can produce one unit in one hour and therefore can produce twice as much as the United Kingdom. Although not by much, the United States also has the absolute advantage in producing cloth because they can produce one unit of cloth in 5 hours while it takes the United Kingdom an additional hour to produce the same outcome.

• Comparative advantage is the ability to make something at a lower opportunity cost than other producers face.

The United States has the comparative advantage in producing wheat as the opportunity cost is one fifth of a unit of cloth which is less than the one third of cloth the United Kingdom can produce. The United Kingdom has the comparative advantage in production of cloth with three units of wheat to the United States cost of five units of wheat giving United Kingdom a lower opportunity cost.

• The law of comparative advantage states that the individual with the lower opportunity cost of producing a particular output should specialize in that output. Therefore, the United States should specialize in producting wheat because they can produce twice as much wheat in the same amount of time, while the United Kingdom should specialize in cloth because although they are not quite as fast as the United States, they will still produce nearly the same amount as the United States while they are producing wheat and something is better than nothing.

You might be interested in
How was the song dynasty related to tang dynasty
Citrus2011 [14]

Answer:

The Song dynasty (960-1279) follows the Tang (618-906) and the two together constitute what is often called "China's Golden Age." the inventions of gunpowder, the compass, and printing all occur under the Song.

5 0
2 years ago
Which of the following is an example of direct democracy?
EastWind [94]

Answer:

B- Town Meetings

Explanation:

5 0
3 years ago
Which of the following best describes Rome contribution to the alphabet?
Vesnalui [34]

Answer:

They modified the Greek alphabet to create the alphabet that is widely used today.

Explanation:

5 0
2 years ago
What is Buddha? In Buddhist
WINSTONCH [101]
Buddha is a god, but that he is a human being who has woken up and can see the true way the mind works.
7 0
3 years ago
Germany, Austria-Hungary, and Italy made up which military alliance that opposed the Triple Entente?
irina [24]
The Central Powers of WW1
3 0
3 years ago
Read 2 more answers
Other questions:
  • Enlightenment philosophers believed that governments should __________.
    5·1 answer
  • What knowledge can you get from hearing something
    11·2 answers
  • Pamela wants to obtain as much useful self-knowledge as she can, so she obtains a personal evaluation from a counseling psycholo
    11·1 answer
  • In at least 150 words, discuss how Scout's point of view affects how we experience the trial.
    5·1 answer
  • Why don’t people vote for third parties?
    5·1 answer
  • What are the types of country according to development status and explain them​
    11·2 answers
  • I need help with this question ASAP
    11·1 answer
  • Drag each word into the appropriate Category
    15·2 answers
  • Why was it important to Mehmed II that the Ottomans conquer Constantinople
    8·1 answer
  • Deer are introduced into a grassland ecosystem and their population increases considerably. If the deer population continues to
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!