| 1) What is the absolute advantage in production. Who has the absolute advantage of producing both goods, Carl or John? Define the absolute advantage,as we can see from the table, we can get the conclusion that Carl has absolute advantage because it takes much less time to get fruits and fish. 2) What is comparative advantage? Please show the opportunity costs of both individuals to produce fruits and fish and, identify the comparative advantages for both individuals? Define
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Gradable Assignment 1 1. Full form of GDP and what is the difference between GDP per Capita Ans: GDP–Gross Domestic Product GDP per Capita – An estimate of an individual spends as a consumer compared to the total population spending on products and services. GDP is gross domestic product, the total economic output of a country, i.e., the amount of money a country makes. GDP per capita is the total output divided by the number of people in the population, so you can get a figure of
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wage law causes unemployment and Normative statements claims that attempt to prescribe how the world should be, i.e. the government should raise minimum wage. 5. Explain how absolute advantage differs from comparative advantage. Absolute advantage differs from comparative advantage because with absolute advantage the producer requires a smaller quantity of inputs
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international trade theories • explain the FDI approaches to international business. Structure 2.1 Foundations of International Business 2.2 International Trade Theories Theory of Mercantilism Theory of Absolute Cost Advantage Theory of Comparative Cost Advantage Heckscher-Ohlin Model Leonief Paradox 2.3 FDI Theories Market Imperfections Approach Product Life Cycle Approach Transaction Cost Approach The Eclectic Paradigm 2.4 Summary 2.5 Key Words 2.6
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Unit 1 Individual Project Economic Concepts Lamar Dolby ECON220-1204B-04 Faime Moussavi October 7, 2012 Abstract Michelle and James are two people faced with opportunity cost decisions. They both can produce chickens and potatoes or one or the other. They both live in isolated regions but share the same resources. When faced with opportunity costs one has to decide what they have to give up in order to gain something they want. In the scenario Michelle can grow 200 potatoes per year or
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less than the dollar value of the item. d. always greater than the cost of producing the item. 5. If Iowa’s opportunity cost of corn is lower than Oklahoma’s opportunity cost of corn, then a. Iowa has a comparative advantage in the production of corn. b. Iowa has an absolute advantage in the production of corn. c. Iowa should import corn from Oklahoma. d. Oklahoma should produce just enough corn to satisfy its own residents’ demands. 6. Which of the following statements is not correct? a. Trade allows
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person has the absolute advantage in which activities? Michelle has the absolute advantage in both activities because she can produce more potatoes and more chickens then James. 6. Which person has the comparative advantage in potatoes? Michelle has the comparative advantage of potatoes 200/50 = 4 pounds of potatoes per 1 chicken, where James is 80/40 = 2 pounds of potatoes per 1 chicken. 7. Which person has the comparative advantage in chicken? James has the comparative advantage in chicken 40/80
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• Weekly quizzes via the course website Lecture 1 ECON001 7 Two Main Sections • Mi Microeconomics i • Household and firm behaviour •Taught in weeks 1-5 T h i k 15 • Mid-term exams in week Mid term 7 will be based on Microeconomics topics • Macroeconomics • Aggregate economy and business cycles • Taught in weeks 9-13 • Final exams in week 15 will be based on Macroeconomics topics Lecture 1 ECON001 8 Assessment • Class Participation (10%) p ( ) • Peer evaluation • Self evaluation
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avoidance c. Individualism d. Collectivism A 7. The wearing of turbans by Muslims in Asia is an example of which of the following? a. Folk custom b. Popular custom c. Symbolic act d. Ritual A 8. Who proposed the theory of absolute advantage? a. David Ricardo b. Adam Smith c. Bertil Ohlin d. Raymond Vernon B 9. The purchase of physical assets or a significant amount of ownership (stock) of a company in another country to gain a measure of management control is called ________
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The competitive advantage of nations: is Porter’s Diamond Framework a new theory that explains the international competitiveness of countries? A.J. Smit ABSTRACT The focus of this article is to clarify the meaning of international competitiveness at the country level within in the context of Porter’s (1990a) thesis that countries, like companies, compete in international markets for their fair share of the world markets. At a country level, there are two schools of thought on country competitiveness:
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