It is not possible for a country to have a comparative advantage in all goods. However, a country can have an absolute advantage in all goods. An absolute advantage exists when a country is simply the best (most efficient) in producing a product or service.
Q. Which calculation helps determine which producer has the absolute advantage?
Amount produced divided by the resources used, is the calculation that helps to determine which producer has the absolute advantage.
Table of Contents
- Q. Which calculation helps determine which producer has the absolute advantage?
- Q. What term is often used in conjunction with absolute advantage is defined as making the best use of resources?
- Q. Which country has an absolute advantage in the production of coffee?
- Q. Which country has absolute advantage in lumber Why?
- Q. What industries does the US have a comparative advantage in?
- Q. What product does the US import the most?
- Q. What is the US’s biggest export?
- Q. Does China have a comparative advantage over the US?
- Q. Why does China have a comparative advantage over the US in the production of televisions?
- Q. What does the US have an absolute advantage in producing?
Q. What term is often used in conjunction with absolute advantage is defined as making the best use of resources?
The term efficiency , is often used in conjunction with absolute advantage, is defined as making the best use of resources.
Q. Which country has an absolute advantage in the production of coffee?
Brazil
Q. Which country has absolute advantage in lumber Why?
Canada
Q. What industries does the US have a comparative advantage in?
The United States has a revealed comparative advantage in exporting capital goods, chemicals, miscellaneous goods, plastics, rubber and transportation.
Q. What product does the US import the most?
Searchable List of America’s Most Valuable Import Products
| Rank | US Import Product | Change |
|---|---|---|
| 1 | Cars | -18.9% |
| 2 | Computers, optical readers | +15.1% |
| 3 | Phone system devices including smartphones | +0.6% |
| 4 | Medication mixes in dosage | +20.7% |
Q. What is the US’s biggest export?
These are the top US exports
- Top U.S. goods exports.
- Food, beverage and feed: $133 billion.
- Crude oil, fuel and other petroleum products: $109 billion.
- Civilian aircraft and aircraft engines: $99 billion.
- Auto parts, engines and car tires: $86 billion.
- Industrial machines: $57 billion.
- Passenger cars: $53 billion.
- Pharmaceuticals: $51 billion.
Q. Does China have a comparative advantage over the US?
An example of a comparative advantage that China has over the U.S. is the production of led light bulbs. If China can make more led light bulbs using 100 million workers than chemicals thus China has a comparative advantage.
Q. Why does China have a comparative advantage over the US in the production of televisions?
Which country has the comparative advantage in TV? China has the comparative advantage because its opportunity cost (2 TVs per shirt) is less than India’s (4 TVs per shirt). Explain why these countries can benefit from trade. Both are able to increase their consumption of TVs and shirts due to trade.
Q. What does the US have an absolute advantage in producing?
The United States has an absolute advantage in productivity with regard to both shoes and refrigerators; that is, it takes fewer workers in the United States than in Mexico to produce both a given number of shoes and a given number of refrigerators.
