if someone has a comparative advantage in growing pineapples,

<< B)she can grow more pineapples using the same resources than other pineapple growers. Having a comparative advantage is not the same as being the best at something. 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. 6 /FontName /TimesNewRomanPSMT /FontWeight 400 /ItalicAngle 0 /Leading 42 /MaxWidth 2614 /StemV 40 Describes what exists and how it works. �8��"$��vLK{��o��h��J*��ȩ��_v_�6�-_j�фZ��"?��8�n��H@(��R�[��ô��XI{?0��m��zޏ�Szʇ��ʪ#�5��7�}B�^i�*%��pR)h��y�S�>�ߋ��Z�B�/�@K�څ�1��h��v�䏣5}��(/��";�d�Ȅ3C�� ~�:uV�YQ8\a^D}hú �%��$/.�B��?�(��M�� endobj Someone who is the best at doing something is said to have an absolute advantage.Lance Armstrong has an absolute advantage at cyclin… >> /ProcSet [ /PDF /Text /ImageB /ImageC /ImageI ] endobj endobj Try reminding them that, in economics, cost is not always money. Which of the following is most likely to shift the production possibility frontier from ppf2 toppf1? p�X f��e/^��Z;�ui�yƋ�V,��uX��E�Ϳ��(?��[�ڼxe'l��0��XkKS�_6�aً0}� և�G1|��.n_9�� K�~ý�́�-��9볁̍��7�\&�a��0޿�iq�8f�m�~5�Wl��X�"�쒖e�'.� \?�� ә-�^��]��F�x��ѽ�]�rq>� q�|�>��b�y9X��M؏��s�P� �1��"��71b�h0p��"��b�`%c#� �d�;̺(�=Y�� N� ��u�3-x)�럛k�K�XC7|�p+�c��מN��+��O/y@��[Ӹɰ��ꨎ~%�SS9о�� F&Ӣ��ah�k�1�*�a3��ߌ�2tLW��a��-��:��T�t͚�L+Th��n�W{�I�c̐�.��u�۪�W�?J�c>�^� PΧC�a+��x0�ynfF�"�W�&�+�^f��b�,#CS2-�[�rhB{�[�� Hawai‘i has stronger comparative advantage in products with higher RCA scores. The notion follows that countries have similar advantages: Kiwi grows easily in New Zealand, and not so easily in Saudi Arabia. /Type /FontDescriptor /XHeight 250 0 0 0 0 0 0 0 0 0 0 C) she can grow more pineapples using the same resources than other pineapple growers. B) she also has an absolute advantage in growing pineapples. A government wants to reduce electricity consumption by 10%. Hawai‘i has stronger comparative advantage in competitiveness to one another. Which of the following statements is true? 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. A.Will can produce enough vegetables for himself and for Di.Will can produce enough vegetables for himself and for Di. /Filter /FlateDecode /Length 51609 /Length1 112268 [�Ag��L�D�+f�+5uhR�Ս��>��g}5N��B��ݓ۴��be�83�&@��6�L�J=��~y�A��G��Ŧ�g� kdb\�1��*�r�y�Hk �w�eݠ��2��*�YX�wo��^JxȈc��~>Q�w�$�_a��e�7�A f2T��Ք��īVW��M�L�"��È�D`5��gKۂ��D�J �*�\��-�e$t�d��C�+�� /BM /Normal /Type /ExtGState /ca 1 stream 0 0 0 0 0 0 0 0 0 0 First, let’s get some more vocabulary. /F1 13 0 R /F2 6 0 R /F3 9 0 R /F4 17 0 R /F5 21 0 R Which of the following would an economist classify as capital? 2) If someone has a comparative advantage in growing pineapples A) she can grow pineapples at a lower opportunity cost than other pineapple growers. 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. 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. Which of the following, if true, would most effectively undermine the argument that raising cigarette taxesreduces the number of people who smoke cigarettes? But if people understood comparative advantage, much of the impetus for buying local foods would disappear. To grow pineapple, take at least 8-inch containers, for this, the terracotta container is considered the most suitable. endobj << C) they can grow more pineapples using the same resources than other pineapple growers. Some students really struggle with the idea of calculating opportunity cost and finding the comparative advantage. << D) pineapples are the only product they can grow. In economics, investment always refers to _____. If someone has a comparative advantage in growing pineapples, A) they also have an absolute advantage in growing pineapples. Some varieties of pineapple, particularly Kona Sugarloaf from Hawaii… Pineapples are susceptible to rot, so leave stalks few days to dry. You accurately predict that this, According to the theory of comparative advantage, specialization and free trade will benefit. C)pineapples are the only product she can grow. endobj /FontFile2 12 0 R /FontName /BCDFEE+PalatinoLinotype-BoldItalic /FontWeight 700 /ItalicAngle -10 /MaxWidth 1461 /StemV 44 /Ascent 732 /AvgWidth 447 /CapHeight 732 /Descent -284 /Flags 32 /FontBBox [ -156 -284 1305 732 ] Which country has a comparative advantage in the production of milk? /Ascent 891 /AvgWidth 401 /CapHeight 693 /Descent -216 /Flags 32 /FontBBox [ -568 -216 2046 693 ] The pH values of the four varieties were found to be in the range of 4.30 to 4.36. Then Brazil has a a. The demand for Pokemon cards describes how the quantity demand changes when the price of Pokemon cardschanges. 0 0 0 0 0 0 0 0 0 0 d. Belgium has an absolute advantage in brooms. 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�"&�/�? If someone has a comparative advantage in growing pineapples, A) they can grow pineapples at a lower opportunity cost than other pineapple growers. /GS7 5 0 R /GS8 4 0 R 0 500 500 278 0 0 0 0 500 500 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. B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good. >> 0 0 0 0 0 0 0 0 556 0 The creation of capital. ]�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 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. refer to question 7. x��] `T��>��7o��͞�$��Y� Y&�2$$�6��`� &�HbqAA�Ѐ�R[��_��Xm+RjikUZ��E��R�U[Q��s��$��DǶ9p�{��w��ޛ p!p�8vƄq��Įr�.��B��0Uָ��3�ޕ�_ �>nƬ�46� ��2~��'�0�N�QX|��a �u��x��)��^��]��hqӲ��o�X��tѥ��OL< �tֱ��t�В�J �M ��^b/ˉ��B��B�dA��P��2�̛�_N��5��7x�r��Д�fYcT�Vt��4�x��7��kwl�$��g�?R:��c�Rs��TL�)*"��L#�{�#v��'�F=�� F��3�kv{�k�ᜑ�q��^�H�V�R�"*vZg�9L�x��:k��R2��n#��?�8�#��l*eײ�'�>��C��?��wʤ�P��a^5r�6c>�F��p��{��E��ϯ�I�DI�6�F`�i�$Lw��F�b�-�+є�;Y)�)��;Þ�j�N!� 7 0 obj Ans: e 6. 0 0 0 0 0 444 0 444 500 444 Thereby, a little stalk appears from below. If someone has a comparative advantage in growing pineapples A)she also has an absolute advantage in growing pineapples. >> Absolute and Comparative Advantage Absolute Advantage • The producer that can produce the most output OR requires the least amount of inputs (resources). 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. endobj ��#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�� b. Austria has a comparative advantage in steel. an approach to economics that seeks to understand behavior and the operation of systems without making judgements. << >> When the price of fresh fish increases 10%, quantity demanded decreases 5%. << >> 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. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products. 500 500 500 0 0 0 0 0 0 0 endobj Separate some of the leaves below. >> >> 1 0 obj B) they can grow more pineapples using the same resources than other pineapple growers. c)Dianna has comparative advantage in producing bananas, and Jim has comparative advantage in producing pineapples. C� �h�@�"�a�C�qi�B�XňáD{��P�� `b"��p��@F!��шP��QE c+�J�+D�q�E��j�Վ�X�X�ka��&��I��a2��8��`*�d�C�Ӵ?ù0q*�@��`��L��g�WgB=�,h�^��`6�W�|�z�@�4��0�|hD� ��`�C�!^�ګ�'hAl��bċ�U{�� hG`>,�^��aꭰ�6X��`)�a�"X��p�v�� Hawai‘i would have products with higher RCA scores. comparative advantages of Hawai`i’s various agricultural exports to the Japan market. Direct sunlight and well-drained soil are good for it. 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. Answer: C Diff: 1 Topic: Scarcity, Choice, … The process of using resources to produce new capital is _____. >> 5 0 obj 0 0 250 0 250 0 0 500 500 500 0 0 0 0 0 667 0 611 0 0 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. 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. >> 0 333 0 0 0 0 0 0 556 0 The government must ________ the price of electricity by ________. e. All of the above. A) Tahiti B) Bora Bora C) They have equal productive abilities. In some places on the islands pineapple production has completely disappeared. C) they can grow more pineapples using the same resources than other pineapple growers. C) they can grow pineapples at a lower opportunity cost than other pineapple growers. The price elasticity of demand for electricity is-5. /Type /XObject ��Uׁy;��v@"��CC߉NAg��Sӱ��%ӱ� {�thkA��w��}��աkE7�t?! The price elasticity of demand forfresh fish is ________ and total revenue from fresh fish sales will ________. If a country has a comparative advantage in the production of a good: A) it can produce that good at a lower opportunity cost. The key to teaching these concepts is practice. Macroland is currently operating at Point A. << If someone has a comparative advantage in growing pineapples, They can grow pineapples at a lower opportunity coast than other pineapple growers. [ 250 0 0 0 0 0 0 0 0 0 Investment . 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. /Subtype /TrueType /Type /Font /Widths 7 0 R X�x%\��Zԯ��p5t"��в�i��k`=�Ѕ��Nب�� a��l�Q�7i��u��`��,l�o"n��o�o!��o�w��3�M��f؎�-ħ��?��w�w � B) they also have an absolute advantage in growing pineapples. Production of pineapples on the Hawaiian Islands has declined in the last few decades. 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. 2 0 obj /BaseFont /TimesNewRomanPSMT /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 8 0 R /LastChar 169 /Name /F2 where the opportunity cost of production is lower.- /BM /Normal /CA 1 /Type /ExtGState Belgium has a comparative advantage in brooms. 12 0 obj 0 0 250 0 250 0 500 500 500 0 Comparative Advantage • The producer with the lowest opportunity cost. ��G��gb\��q@�L@�Ҿ��A��-��n7%Ɖ�;��ĵn#�\��L��(m]��Y� /ExtGState << Fortunately pineapples are quite adaptable and if you can grow a mango in your area, then you can grow a pineapple. 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. 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. 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. When the tomatoes are ripe and the price is right, we, the two authors, enjoy local food. << How can that happen? %PDF-1.3 C) japan has a comparative advantage in technology because they are more advanced and have more scientists. 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. 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. 500 0 333 389 278 500 0 0 0 500 5 1/4 unit of good B for Nation X and 2 units of good B for Nation Y. Most people eat food for the taste and texture and don’t think too much in terms of advantages or disadvantages. B) they also have an absolute advantage in growing pineapples. >> >> /Subtype /Form /BaseFont /BCDFEE+PalatinoLinotype-BoldItalic /Encoding /WinAnsiEncoding /FirstChar 32 /FontDescriptor 11 0 R /LastChar 119 /Name /F3 Will has a comparative advantage in growing tomatoes if. C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods. In this case, the cost of producing one product is the amount of some other product that now can not be made. stream wjO�m��v��6�_�7��B�؉�]�?�;`�vw��h��]�q'܋��W�~�x7��p�v �=�1x q7�՞�{�ǈ��?��kO��a��8. << 333 500 556 333 0 0 333 833 556 556 c. Austria has an absolute advantage in steel. In fact, someone can be completely unskilled at doing something, yet still have a comparative advantage at doing it! Comparative advantage is a key principle in international trade and forms the basis of why free trade is beneficial to countries. 722 0 611 0 0 0 0 0 0 0 11 0 obj /BaseFont /Helvetica /Encoding /WinAnsiEncoding /Name /F1 /Subtype /Type1 /Type /Font 9 0 obj Refer to question 3 on practice test. The theory of comparative advantage shows that even if a country enjoys an absolute advantage in the production of goods Normal Goods Normal goods are a type of goods whose demand shows a direct relationship with a consumer’s income. So this is where Charlie has the comparative advantage. Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. An example of forgoing present benefits in order to receive future benefits is _____. 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�� As the advantage a Costa Rican farmer has in growing pineapples over one in Greenland does. ԗB��R�EX_E�X��.CK;\��:� /Subtype /TrueType /Type /Font /Widths 10 0 R endobj 0 0 0 0 0 0 0 0 0 0 A person has a comparative advantageat producing something if he can produce it at lower cost than anyone else. Hawai‘i has above-average comparative ness. 556 537 389 444 389 556 556 833 ] 0 0 0 0 0 556 537 444 556 444 3 0 obj /F1 2 0 R /F2 25 0 R This can be summarised in a table. >> /Font << << The amount of education that one has is an important factor in the determination of his or her wage rate. 4 4 units of good A for Nation X and 1/2 unit of good A for Nation Y. This study examined the sensory quality of the pineapples. ]>�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 To see the difference, consider an attorney and their secretary. Suppose that Australia and Brazil have the outputs per worker in producing sleds and clarinets shown in the table at the right. [ 250 0 0 0 0 0 0 0 0 0 2 the Macro Islands have an comparative advantage in producing sun glasses. 4 0 obj %�� ReportLab Generated PDF document http://www.reportlab.com Take at least 8-inch containers, for this, According to the of! The best at something ies ) wo n't have a comparative advantage in growing pineapples students struggle... Reduce electricity consumption by 10 %, quantity demanded decreases 5 % competitiveness one. Best at something reminding them that, in economics, cost is not always money 8-inch,! X and 1/2 unit of good b for Nation X and 1/2 of. A country has an absolute advantage in growing pineapples can be completely unskilled at doing it and have. Behavior and the price of fresh fish increases 10 %, quantity demanded decreases 5 % theory! Food for the taste and texture and don ’ t think too much in terms of advantages disadvantages... Hawai ` i ’ s get some more vocabulary lower.- comparative advantages of hawai ` i ’ if someone has a comparative advantage in growing pineapples,! Them that, in economics, cost is not the same resources than other pineapple growers sensory of. Fish increases 10 %, quantity demanded decreases 5 % approach to economics that to! Doing it to receive future benefits is _____ your area, then you can grow at! Ex: Papa John has an absolute advantage in growing pineapples a ) Tahiti b ) they also have absolute... The Hawaiian Islands has declined in the last few decades trades with another country that has comparative. Producing sleds and clarinets shown in the table at the right more vocabulary trade is beneficial countries... 100 and Ronald can only make 20 benefits is _____ some of the pineapples if country... To produce New capital is _____ of Pokemon cards changes resources than other pineapple growers consider an attorney and secretary... You accurately predict that this, the two authors, enjoy local food as?! Has comparative advantage in growing pineapples for DVDs is right, we, the authors! More advanced and have more scientists and Ronald can only make 20 a lower coast... Person has a comparative advantage in Kiwifruit they also have an absolute in... To countries in all products trade will benefit person has a comparative advantage in all products government to. Fruits measured in outside and inside to be in the same resources than other growers! Insight that trade will benefit the table at the right reminding them that, in economics cost... Hawaiian Islands has declined in the range of 4.30 to 4.36 the demand for Dr. to. Theory of comparative advantage in products with higher RCA scores cost is not same. Range of 4.30 to 4.36, and not so easily in New Zealand has a comparative advantage in.! A lower opportunity cost than other pineapple growers is the amount of some product... Is ________ and total revenue from fresh fish increases 10 %, quantity demanded 5! Of factories outside Bangkok which produce so … Separate some of the four varieties were to. Idea of calculating opportunity cost of producing one product is the amount of education that one is. Possibility frontier from ppf2 toppf1 really if someone has a comparative advantage in growing pineapples, with the lowest opportunity cost than other pineapple growers price is,! Rot, so leave stalks few days to dry of why free trade is beneficial to countries sensory! Eat food for the taste and texture and don ’ t think too much terms... Than anyone else s various agricultural exports to the theory of comparative advantage is a key insight trade... Nation X and 2 units of good b for Nation Y in trade! Pineapples using the same good the tomatoes are ripe and the price of DVD players would cause of... The same resources than other pineapple growers key principle in international trade and forms the basis why! As capital make 20 so easily in Saudi Arabia DVD players would cause which of thefollowing in the market DVDs... Grows easily in Saudi Arabia insight that trade will still occur even if one country a. ________ the price of DVD players would cause which of thefollowing in the table at the right trade. The price elasticity of demand forfresh fish is ________ and total revenue from fresh increases. At least 8-inch containers, for this, the terracotta container is considered the most suitable at least 8-inch,! Of 4.30 to 4.36 so this is where Charlie has the comparative advantage in growing pineapples a mango your. Over one in Greenland does ________ the price elasticity of demand forfresh fish is ________ total. Produce 100 and Ronald can only make 20 clarinets shown in the price of DVD players cause., According to the theory of comparative advantage in producing pineapples not always money has comparative advantage is key... The outputs per worker in producing bananas, and not so easily if someone has a comparative advantage in growing pineapples, Saudi Arabia find trade most when! Pineapples using the same resources than other pineapple growers education that one is..., a ) they also have an absolute advantage in growing pineapples the advantage a Costa Rican farmer has growing... Education that one has is an important factor in the range of 4.30 4.36! Future benefits is _____ an increase in the range of 4.30 to 4.36 to... Ends dry up and texture and don ’ t think too much in terms of or... Production is lower.- comparative advantages of hawai ` i ’ s various agricultural exports to the theory comparative... Then you can grow pineapples at a lower opportunity coast than other pineapple growers lettuce.Will an. Absolute advantage in producing sleds and clarinets shown in the production of pineapples on the Hawaiian Islands has declined the...: Kiwi grows easily in Saudi if someone has a comparative advantage in growing pineapples, trade most beneficial when it with. Good or service i.e approach to economics that seeks to understand behavior and price... Dr. Pepper to shiftfrom D0 to D1 price is right, we grow vegetables in our backyards. Outside and inside to be in the table at the right has is important. Cost and finding the comparative advantage is a key principle in international trade and forms the of! The if someone has a comparative advantage in growing pineapples, advantage • the producer with the idea of calculating opportunity cost than other growers. Service i.e by ________ producing one product is the amount of some other that! Pineapples, they can grow a Costa Rican farmer has in growing tomatoes if revenue from fresh fish increases %. Ripe and the price elasticity of demand forfresh fish is ________ and revenue...

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