f. With half the workers in each country producing each of the goods, the United States would produce 200 million cars (that is 50 million workers times 4 cars each) and 500 million tons of grain (50 million workers times 10 tons each)….

Who has the absolute advantage when it comes to producing cars?

The United States
The United States has the absolute advantage in the production of both cars and wine. It can produce more of both goods. b. In the United States, 1/3 unit of wine must be given up to produce an additional car.

What is the US opportunity cost of creating 1 car?

The opportunity cost of one car in the US is the amount of grain that worker cannot produce. Since a US worker can produce either 4 cars or 10 tons of grain per year, if she produces 1 more car, she can’t produce 10/4 or 2.5 tons of grain.

Which country has a comparative advantage in producing cars in producing grain?

Japan
Japan has a comparative advantage in producing cars, because it has a lower opportunity cost in terms of grain given up.

Does Japan have an absolute advantage?

Japan has absolute advantage in producing both fish and cloth because one worker can produce more of either goods in Japan. Absolute advantage is determined by comparing the absolute productivity in different countries of producing each good. However, absolute advantage is not the critical consideration.

Which country has an absolute advantage in computers?

If each country has an absolute advantage in only one good and specializes in that good, then both countries can gain from trade. Which country has an absolute advantage in computers? France has an absolute advantage in both goods!

What country has an absolute advantage over the US?

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 Japan’s number one export?

Searchable List of Japan’s Most Valuable Export Products

Which country has an absolute advantage for growing bananas?

The correct answer is Puerto Rico.

Which country has the absolute advantage in coffee?

Answer:Brazil has an absolute advantage in coffee:–Producing a pound of coffee requires only one labor-hour in Brazil, but two in Argentina.

What does China have an absolute advantage in?

China and Consumer Electronics: Many consumer electronics are manufactured in China. China can produce such goods more efficiently, which gives it an absolute advantage relative to many countries. Imagine that Economy A can produce 5 widgets per hour with 3 workers.

What country has an absolute advantage in sugar?

Which country has an absolute advantage in sugar? Mexico.

Why does this country have an absolute advantage?

The concept of absolute advantage was developed by Adam Smith in his book “Wealth of Nations” to show how countries can gain from trade by specializing in producing and exporting the goods that they produce more efficiently than other countries and importing goods other countries produce more efficiently.

Does Brazil have an absolute advantage in coffee production?

The most straightforward case for free trade is that countries have different absolute advantages in producing goods. For example, because of differences in soil and climate, the United States is better at producing wheat than Brazil, and Brazil is better at producing coffee than the United States.

What is the opportunity cost of Japan producing a car?

Note that both are linear production possibility frontiers since there is a constant tradeoff between grain and cars for both nations. c. The opportunity cost of one car in the US is the amount of grain that worker cannot produce….