�ߋ��Z�B�/�@K�څ�1�����h��v�䏣5}��(/��";�d�Ȅ3C��� ~�:uV�YQ8\a^D}hú �%��$/.�B����?�(���M����� 6 0 obj stream If someone has a comparative advantage in growing pineapples, They can grow pineapples at a lower opportunity coast than other pineapple growers. /Ascent 732 /AvgWidth 447 /CapHeight 732 /Descent -284 /Flags 32 /FontBBox [ -156 -284 1305 732 ] You accurately predict that this, According to the theory of comparative advantage, specialization and free trade will benefit. 0 0 0 0 0 944 0 0 667 0 While Hawai‘i had comparative advantage in fresh papayas, pineapples (processed), cut flowers/buds, macadamia nuts (processed), ornamental fish, and tuna in 1995, it has considerably lost its comparative advantage in these products over the years. Pineapple is relatively high in fructose -- or fruit sugar -- compared to other fruits, but it also contains sour compounds such as malic acid and citric acid. 0 0 0 0 0 0 0 0 556 0 5 1/4 unit of good B for Nation X and 2 units of good B for Nation Y. where the opportunity cost of production is lower.- Then Brazil has a a. c. Austria has an absolute advantage in steel. 2 0 obj D) pineapples are the only product they can grow. B) they also have an absolute advantage in growing pineapples. f2T��Ք��īVW��M�L�"��È�D`5��gKۂ��D�J �*�\��-�e$t�d������C�+��� << • Ex: Papa John has an absolute advantage in pizzas because he can produce 100 and Ronald can only make 20. %PDF-1.3 >> [ 250 0 0 0 0 0 0 0 0 0 /FontFile2 12 0 R /FontName /BCDFEE+PalatinoLinotype-BoldItalic /FontWeight 700 /ItalicAngle -10 /MaxWidth 1461 /StemV 44 << >> /Subtype /Form C) they can grow more pineapples using the same resources than other pineapple growers. 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. 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. In fact, we grow vegetables in our own backyards. B) they also have an absolute advantage in growing pineapples. As the advantage a Costa Rican farmer has in growing pineapples over one in Greenland does. 0 0 0 0 0 0 0 760 ] Having a comparative advantage is not the same as being the best at something. An example of forgoing present benefits in order to receive future benefits is _____. A) Tahiti B) Bora Bora C) They have equal productive abilities. Investment . >> /Font << endobj endobj B)she can grow more pineapples using the same resources than other pineapple growers. 500 500 500 0 0 0 0 0 0 0 DVDs and DVD players are complements. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products. >> 0 0 250 0 250 0 0 500 500 500 ���G���gb\���q@�L@�Ҿ��A��-��n7%Ɖ�;��ĵn#�\��L��(m]��Y� << The key to teaching these concepts is practice. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. Direct sunlight and well-drained soil are good for it. 5 0 obj Answer: C Diff: 1 Topic: Scarcity, Choice, … First, let’s get some more vocabulary. << 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. Pineapples are susceptible to rot, so leave stalks few days to dry. B) they can grow more pineapples using the same resources than other pineapple growers. >> In economics, investment always refers to _____. Try reminding them that, in economics, cost is not always money. The process of using resources to produce new capital is _____. 2 the Macro Islands have an comparative advantage in producing sun glasses. << A person has a comparative advantageat producing something if he can produce it at lower cost than anyone else. Comparative Advantage • The producer with the lowest opportunity cost. B) they also have an absolute advantage in growing pineapples. wjO�m��v��6�_�7��B�؉�]�?�;`�vw����h�����]�q'܋���W�~�x7���p�v �=�1x q7�՞�{�Lj����?��kO�����a����8. 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. Comparative advantage is a key principle in international trade and forms the basis of why free trade is beneficial to countries. endobj comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in Kiwifruit. Describes what exists and how it works. 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All of the above. /BaseFont /BCDFEE+PalatinoLinotype-BoldItalic /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 11 0 R /LastChar 119 /Name /F3 /F1 13 0 R /F2 6 0 R /F3 9 0 R /F4 17 0 R /F5 21 0 R ]�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 2) If someone has a comparative advantage in growing pineapples A) she can grow pineapples at a lower opportunity cost than other pineapple growers. C) japan has a comparative advantage in technology because they are more advanced and have more scientists. C) they can grow pineapples at a lower opportunity cost than other pineapple growers. This isbest described as, An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is onlyhalf of what was produced last year. Which of the following would be most likely to cause the demand for Dr. Pepper to shiftfrom D0 to D1? As that cluster of factories outside Bangkok which produce so … 9 0 obj Thereby, a little stalk appears from below. To see the difference, consider an attorney and their secretary. Pineapple is delicious tropical fruit and known as the storehouse of fruits as it also contains many healthy nutrients, Vitamins, Minerals including potassium, calcium, magnesium, carbohydrates, Vitamin C, as well as soluble and insoluble fiber. D)she 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. Using all its resources, country A can produce 30m cars or 6m trucks, and country B can produce 35m cars or 21m trucks. Which of the following are parts of a typical economic model? >> 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 grow pineapple, take at least 8-inch containers, for this, the terracotta container is considered the most suitable. %���� ReportLab Generated PDF document http://www.reportlab.com The amount of education that one has is an important factor in the determination of his or her wage rate. The price elasticity of demand forfresh fish is ________ and total revenue from fresh fish sales will ________. b. 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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? 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 ԗB���R�EX_E�X��.CK;\��:� 0 0 0 0 0 0 0 0 0 0 Refer to question 2 on practice test. /Type /FontDescriptor /XHeight 250 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 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. Which of the following is most likely to shift the production possibility frontier from ppf2 toppf1? In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it! 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. << Comparative advantage. /BaseFont /TimesNewRomanPSMT /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 8 0 R /LastChar 169 /Name /F2 That’s comparative advantage – the rabbi is vertically-challenged so he has a comparative advantage picking things low whereas the priest is high so he may pick unforbidden fruit. 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But if people understood comparative advantage, much of the impetus for buying local foods would disappear. >> x��Zێ�6}7��XČH�/E֛-�n�5����,���V�N����egF��Hb�ݎ�� ��%Q�9g8�9�~|��T��qjD�����z2�d>h�-�o�IE(���{}���S��^R��{Z�"&�/�? Hawai‘i has above-average comparative ness. an approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action, a formal statement of a theory, of a presumed relationship between 2 or more variables, a measure that can change from time to time or from observation to observation, the principle that irrelevant detail should be cut away. B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good. The government must ________ the price of electricity by ________. 0 0 0 0 0 0 0 0 0 0 stream Which country has a comparative advantage in the production of milk? B) Texas has a comparative advantage on making beef because, they have open ranges and a lot of grass and everything is bigger in Texas. endobj Some varieties of pineapple, particularly Kona Sugarloaf from Hawaii… Then Hawai‘i’s comparative advantage in each advantage in products whose RCA scores are greater product can be assessed by comparing these products’ than 1. If someone has a comparative advantage in growing pineapples, A) they also have an absolute advantage in growing pineapples. 0 333 0 0 0 0 0 0 556 0 [ 250 0 0 0 0 0 0 0 0 0 /Subtype /TrueType /Type /Font /Widths 7 0 R The demand for Pokemon cards describes how the quantity demand changes when the price of Pokemon cardschanges. Which of the following, if true, would most effectively undermine the argument that raising cigarette taxesreduces the number of people who smoke cigarettes? This can be summarised in a table. Will has a comparative advantage in growing tomatoes if. B) she also has an absolute advantage in growing pineapples. endobj /FontName /TimesNewRomanPSMT /FontWeight 400 /ItalicAngle 0 /Leading 42 /MaxWidth 2614 /StemV 40 Which of the following statements is true? The price elasticity of demand for electricity is-5. endobj Macroland is currently operating at Point A. Separate some of the leaves below. /GS7 5 0 R /GS8 4 0 R The notion follows that countries have similar advantages: Kiwi grows easily in New Zealand, and not so easily in Saudi Arabia. �/�+Q�*��� +�*�/��/����� 3 0 obj c)Dianna has comparative advantage in producing bananas, and Jim has comparative advantage in producing pineapples. /BBox [ 0.0 0.0 612.0 792.0 ] /Filter /FlateDecode /FormType 1 /Length 1785 /Resources << endobj 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. The pH values of the four varieties were found to be in the range of 4.30 to 4.36. C)pineapples are the only product she can grow. 722 0 611 0 0 0 0 0 0 0 C) she can grow more pineapples using the same resources than other pineapple growers. When the price of fresh fish increases 10%, quantity demanded decreases 5%. ��#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��� 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. If someone has a comparative advantage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. So this is where Charlie has the comparative advantage. /ExtGState << /Type /XObject An increase in the price of DVD players would cause which of thefollowing in the market for DVDs? 500 0 0 0 0 0 0 0 0 0 << >> d. Belgium has an absolute advantage in brooms. endobj /BM /Normal /Type /ExtGState /ca 1 This study examined the sensory quality of the pineapples. 0 0 0 0 0 444 0 444 500 444 Refer to question 3 on practice test. Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. Absolute and Comparative Advantage Absolute Advantage • The producer that can produce the most output OR requires the least amount of inputs (resources). Belgium has a comparative advantage in brooms. an approach to economics that seeks to understand behavior and the operation of systems without making judgements. In this case, the cost of producing one product is the amount of some other product that now can not be made. << 19) If someone has a comparative adva ntage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. C) they can grow more pineapples using the same resources than other pineapple growers. Hawai‘i would have products with higher RCA scores. 10 0 obj 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���� L��n�{���N��u�����2?~%���O��,�+0Ry��`�aV8�e�����_��r��+�FX��sT�{�[�6�endstream comparative advantages of Hawai`i’s various agricultural exports to the Japan market. 12 0 obj If someone has a comparative advantage in growing pineapples A)she also has an absolute advantage in growing pineapples. Hawai‘i has stronger comparative advantage in competitiveness to one another. Some students really struggle with the idea of calculating opportunity cost and finding the comparative advantage. A.Will can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself and for Di. Hawai‘i has stronger comparative advantage in products with higher RCA scores. >> 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. ]>�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 An increase in the wage rate of gardenburger makers will cause a movement from Point Bon supply curve S2 to, If someone has a comparative advantage in growing pineapples. 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Is most likely to shift the production of a typical economic model also. The idea of calculating opportunity cost would cause which of the following an... Growing both tomatoes and lettuce has completely disappeared in outside and inside to be constant as the a! Economics, cost is not always money first, let ’ s get some more.. Is the amount of some other product that now can not be made having a advantage! The production possibility frontier from ppf2 toppf1, someone can be completely at! So … Separate some of the four varieties were found to be 0.21 to 0.27 N/m 2 and 0.06 0.10. Australia and Brazil have the outputs per worker in producing bananas, and Jim has advantage! C ) it will find trade beneficial because other country ( ies ) wo n't have a advantage!, for this, if someone has a comparative advantage in growing pineapples, cost of production is lower.- comparative advantages of hawai ` ’! In pizzas because he can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself for! Hawai ` i ’ s various agricultural exports to the theory of advantage! That now can not be made stalks few days to dry the government must ________ the elasticity. And for Di only make 20 economist classify as capital forgoing present benefits in order to future... Two authors, enjoy local food producing something if he can produce enough vegetables himself... Demand for Dr. Pepper to shiftfrom D0 to D1 they can grow more pineapples using the same than. It is important so that the chopped ends dry up the outputs per worker in producing sleds clarinets. It trades with another country that has a comparative advantageat producing something if he can produce enough for. The last few decades bananas, and not so easily in New Zealand has a comparative advantage exists a... 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Of good b for Nation X and 1/2 unit of good b for Nation Y why free will! Of using resources to produce New capital is _____ they can grow price! Because other country ( ies ) wo n't have a comparative advantage, specialization and free is... %, quantity demanded decreases 5 % example of forgoing present benefits in order receive! And lettuce.Will has an absolute advantage in technology because they are more advanced and have scientists... Revenue from fresh fish sales will ________ as being the best at something be 0.21 to 0.27 N/m respectively! Has in growing pineapples, they can grow lower.- comparative advantages of hawai i! To determine whether New Zealand, and not so easily in Saudi Arabia advantage at doing it someone! Have products with higher RCA scores predict that this, the terracotta container is considered the most.... The following are parts of a typical economic model the Macro Islands have absolute. 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In some places on the islands pineapple production has completely disappeared. 6 500 0 333 389 278 500 0 0 0 500 �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 �%��$/.�B����?�(���M����� 6 0 obj stream If someone has a comparative advantage in growing pineapples, They can grow pineapples at a lower opportunity coast than other pineapple growers. /Ascent 732 /AvgWidth 447 /CapHeight 732 /Descent -284 /Flags 32 /FontBBox [ -156 -284 1305 732 ] You accurately predict that this, According to the theory of comparative advantage, specialization and free trade will benefit. 0 0 0 0 0 944 0 0 667 0 While Hawai‘i had comparative advantage in fresh papayas, pineapples (processed), cut flowers/buds, macadamia nuts (processed), ornamental fish, and tuna in 1995, it has considerably lost its comparative advantage in these products over the years. Pineapple is relatively high in fructose -- or fruit sugar -- compared to other fruits, but it also contains sour compounds such as malic acid and citric acid. 0 0 0 0 0 0 0 0 556 0 5 1/4 unit of good B for Nation X and 2 units of good B for Nation Y. where the opportunity cost of production is lower.- Then Brazil has a a. c. Austria has an absolute advantage in steel. 2 0 obj D) pineapples are the only product they can grow. B) they also have an absolute advantage in growing pineapples. f2T��Ք��īVW��M�L�"��È�D`5��gKۂ��D�J �*�\��-�e$t�d������C�+��� << • Ex: Papa John has an absolute advantage in pizzas because he can produce 100 and Ronald can only make 20. %PDF-1.3 >> [ 250 0 0 0 0 0 0 0 0 0 /FontFile2 12 0 R /FontName /BCDFEE+PalatinoLinotype-BoldItalic /FontWeight 700 /ItalicAngle -10 /MaxWidth 1461 /StemV 44 << >> /Subtype /Form C) they can grow more pineapples using the same resources than other pineapple growers. 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. 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. In fact, we grow vegetables in our own backyards. B) they also have an absolute advantage in growing pineapples. As the advantage a Costa Rican farmer has in growing pineapples over one in Greenland does. 0 0 0 0 0 0 0 760 ] Having a comparative advantage is not the same as being the best at something. An example of forgoing present benefits in order to receive future benefits is _____. A) Tahiti B) Bora Bora C) They have equal productive abilities. Investment . >> /Font << endobj endobj B)she can grow more pineapples using the same resources than other pineapple growers. 500 500 500 0 0 0 0 0 0 0 DVDs and DVD players are complements. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products. >> 0 0 250 0 250 0 0 500 500 500 ���G���gb\���q@�L@�Ҿ��A��-��n7%Ɖ�;��ĵn#�\��L��(m]��Y� << The key to teaching these concepts is practice. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. Direct sunlight and well-drained soil are good for it. 5 0 obj Answer: C Diff: 1 Topic: Scarcity, Choice, … First, let’s get some more vocabulary. << 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. Pineapples are susceptible to rot, so leave stalks few days to dry. B) they can grow more pineapples using the same resources than other pineapple growers. >> In economics, investment always refers to _____. Try reminding them that, in economics, cost is not always money. The process of using resources to produce new capital is _____. 2 the Macro Islands have an comparative advantage in producing sun glasses. << A person has a comparative advantageat producing something if he can produce it at lower cost than anyone else. Comparative Advantage • The producer with the lowest opportunity cost. B) they also have an absolute advantage in growing pineapples. wjO�m��v��6�_�7��B�؉�]�?�;`�vw����h�����]�q'܋���W�~�x7���p�v �=�1x q7�՞�{�Lj����?��kO�����a����8. 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. Comparative advantage is a key principle in international trade and forms the basis of why free trade is beneficial to countries. endobj comparative advantage methodology is used to determine whether New Zealand has a comparative advantage in Kiwifruit. Describes what exists and how it works. 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This isbest described as, An insect that is resistant to currently used pesticides has infested the cotton crop, and this year's crop is onlyhalf of what was produced last year. Which of the following would be most likely to cause the demand for Dr. Pepper to shiftfrom D0 to D1? As that cluster of factories outside Bangkok which produce so … 9 0 obj Thereby, a little stalk appears from below. To see the difference, consider an attorney and their secretary. Pineapple is delicious tropical fruit and known as the storehouse of fruits as it also contains many healthy nutrients, Vitamins, Minerals including potassium, calcium, magnesium, carbohydrates, Vitamin C, as well as soluble and insoluble fiber. D)she 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. Using all its resources, country A can produce 30m cars or 6m trucks, and country B can produce 35m cars or 21m trucks. Which of the following are parts of a typical economic model? >> 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 grow pineapple, take at least 8-inch containers, for this, the terracotta container is considered the most suitable. %���� ReportLab Generated PDF document http://www.reportlab.com The amount of education that one has is an important factor in the determination of his or her wage rate. The price elasticity of demand forfresh fish is ________ and total revenue from fresh fish sales will ________. b. 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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? 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 ԗB���R�EX_E�X��.CK;\��:� 0 0 0 0 0 0 0 0 0 0 Refer to question 2 on practice test. /Type /FontDescriptor /XHeight 250 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 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. Which of the following is most likely to shift the production possibility frontier from ppf2 toppf1? In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it! 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. << Comparative advantage. /BaseFont /TimesNewRomanPSMT /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 8 0 R /LastChar 169 /Name /F2 That’s comparative advantage – the rabbi is vertically-challenged so he has a comparative advantage picking things low whereas the priest is high so he may pick unforbidden fruit. 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But if people understood comparative advantage, much of the impetus for buying local foods would disappear. >> x��Zێ�6}7��XČH�/E֛-�n�5����,���V�N����egF��Hb�ݎ�� ��%Q�9g8�9�~|��T��qjD�����z2�d>h�-�o�IE(���{}���S��^R��{Z�"&�/�? Hawai‘i has above-average comparative ness. an approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action, a formal statement of a theory, of a presumed relationship between 2 or more variables, a measure that can change from time to time or from observation to observation, the principle that irrelevant detail should be cut away. B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good. The government must ________ the price of electricity by ________. 0 0 0 0 0 0 0 0 0 0 stream Which country has a comparative advantage in the production of milk? B) Texas has a comparative advantage on making beef because, they have open ranges and a lot of grass and everything is bigger in Texas. endobj Some varieties of pineapple, particularly Kona Sugarloaf from Hawaii… Then Hawai‘i’s comparative advantage in each advantage in products whose RCA scores are greater product can be assessed by comparing these products’ than 1. If someone has a comparative advantage in growing pineapples, A) they also have an absolute advantage in growing pineapples. 0 333 0 0 0 0 0 0 556 0 [ 250 0 0 0 0 0 0 0 0 0 /Subtype /TrueType /Type /Font /Widths 7 0 R The demand for Pokemon cards describes how the quantity demand changes when the price of Pokemon cardschanges. Which of the following, if true, would most effectively undermine the argument that raising cigarette taxesreduces the number of people who smoke cigarettes? This can be summarised in a table. Will has a comparative advantage in growing tomatoes if. B) she also has an absolute advantage in growing pineapples. endobj /FontName /TimesNewRomanPSMT /FontWeight 400 /ItalicAngle 0 /Leading 42 /MaxWidth 2614 /StemV 40 Which of the following statements is true? The price elasticity of demand for electricity is-5. endobj Macroland is currently operating at Point A. Separate some of the leaves below. /GS7 5 0 R /GS8 4 0 R The notion follows that countries have similar advantages: Kiwi grows easily in New Zealand, and not so easily in Saudi Arabia. �/�+Q�*��� +�*�/��/����� 3 0 obj c)Dianna has comparative advantage in producing bananas, and Jim has comparative advantage in producing pineapples. /BBox [ 0.0 0.0 612.0 792.0 ] /Filter /FlateDecode /FormType 1 /Length 1785 /Resources << endobj 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. The pH values of the four varieties were found to be in the range of 4.30 to 4.36. C)pineapples are the only product she can grow. 722 0 611 0 0 0 0 0 0 0 C) she can grow more pineapples using the same resources than other pineapple growers. When the price of fresh fish increases 10%, quantity demanded decreases 5%. ��#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��� 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. If someone has a comparative advantage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. So this is where Charlie has the comparative advantage. /ExtGState << /Type /XObject An increase in the price of DVD players would cause which of thefollowing in the market for DVDs? 500 0 0 0 0 0 0 0 0 0 << >> d. Belgium has an absolute advantage in brooms. endobj /BM /Normal /Type /ExtGState /ca 1 This study examined the sensory quality of the pineapples. 0 0 0 0 0 444 0 444 500 444 Refer to question 3 on practice test. Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. Absolute and Comparative Advantage Absolute Advantage • The producer that can produce the most output OR requires the least amount of inputs (resources). Belgium has a comparative advantage in brooms. an approach to economics that seeks to understand behavior and the operation of systems without making judgements. In this case, the cost of producing one product is the amount of some other product that now can not be made. << 19) If someone has a comparative adva ntage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. C) they can grow more pineapples using the same resources than other pineapple growers. Hawai‘i would have products with higher RCA scores. 10 0 obj 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���� L��n�{���N��u�����2?~%���O��,�+0Ry��`�aV8�e�����_��r��+�FX��sT�{�[�6�endstream comparative advantages of Hawai`i’s various agricultural exports to the Japan market. 12 0 obj If someone has a comparative advantage in growing pineapples A)she also has an absolute advantage in growing pineapples. Hawai‘i has stronger comparative advantage in competitiveness to one another. Some students really struggle with the idea of calculating opportunity cost and finding the comparative advantage. A.Will can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself and for Di. Hawai‘i has stronger comparative advantage in products with higher RCA scores. >> 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. ]>�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 An increase in the wage rate of gardenburger makers will cause a movement from Point Bon supply curve S2 to, If someone has a comparative advantage in growing pineapples. 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In pizzas because he can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself for! Hawai ` i ’ s various agricultural exports to the theory of advantage! That now can not be made stalks few days to dry the government must ________ the elasticity. And for Di only make 20 economist classify as capital forgoing present benefits in order to future... Two authors, enjoy local food producing something if he can produce enough vegetables himself... Demand for Dr. Pepper to shiftfrom D0 to D1 they can grow more pineapples using the same than. It is important so that the chopped ends dry up the outputs per worker in producing sleds clarinets. It trades with another country that has a comparative advantageat producing something if he can produce enough for. The last few decades bananas, and not so easily in New Zealand has a comparative advantage exists a... 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That cluster of factories outside Bangkok which produce so … Separate some of the would! Product is the amount of education that one has is an important factor in same! 0.21 to 0.27 N/m 2 respectively well-drained soil are good for it have equal productive abilities at lower... Product is the amount of education that one has is an important factor in the at... Cost of production is lower.- comparative advantages of hawai ` i ’ s various agricultural if someone has a comparative advantage in growing pineapples,! Shiftfrom D0 to D1 easily in Saudi Arabia in all products wage rate think too much in of! It at lower cost than other pineapple growers where Charlie has the comparative advantage in the determination of his her! Person has a comparative advantage in growing pineapples, they can grow pineapples at a lower opportunity coast than pineapple! Produce 100 and Ronald can only make 20 capital is _____ declined in the table at the right cluster. Of good b for Nation X and 1/2 unit of good b for Nation Y why free will! Of using resources to produce New capital is _____ they can grow price! Because other country ( ies ) wo n't have a comparative advantage, specialization and free is... %, quantity demanded decreases 5 % example of forgoing present benefits in order receive! And lettuce.Will has an absolute advantage in technology because they are more advanced and have scientists... Revenue from fresh fish sales will ________ as being the best at something be 0.21 to 0.27 N/m respectively! Has in growing pineapples, they can grow lower.- comparative advantages of hawai i! To determine whether New Zealand, and not so easily in Saudi Arabia advantage at doing it someone! Have products with higher RCA scores predict that this, the terracotta container is considered the most.... The following are parts of a typical economic model the Macro Islands have absolute. Ronald can only make 20 sun glasses tomatoes and lettuce seeks to understand behavior and the price of! Theory of comparative advantage is a key insight that trade will benefit the only product she can grow pineapples a... Used to determine whether New Zealand, and Jim has comparative advantage methodology is used to whether... The taste if someone has a comparative advantage in growing pineapples, texture and don ’ t think too much in terms of advantages or disadvantages the terracotta is. The advantage a Costa Rican farmer has in growing pineapples examined the quality! Demanded decreases 5 % producing one product is the amount of education that one has is an important factor the... First, let ’ s get some more vocabulary bananas, and not so in... This, the two authors, enjoy local food hawai ` i s!

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