Hello Please kindly only answer if you are a real economist ans sure 100% about

Question

Hello
Please kindly only answer if you are a real economist ans sure 100% about the correct answer. I wasted my questions credit for uncertain answers





1. Is there an absolute advantage for each country in wheat or cloth? Why?
2. Which country should specialize in wheat? In cloth? Explain your answer. Hello
Please kindly only answer if you are a real economist ans sure 100% about the correct answer. I wasted my questions credit for uncertain answers





1. Is there an absolute advantage for each country in wheat or cloth? Why?
2. Which country should specialize in wheat? In cloth? Explain your answer. 1. Use the information in the following table on labor productivities in the United Kingdom and the United States to answer questions a through f. Output per Hour Worked US UK Cloth 8 units 12 units Wheat 9 units 10 units a. Is there an absolute advantage for each country in wheat or cloth? Why? b. Which country should specialize in wheat? In cloth? Explain your answer.

Explanation / Answer

a) Yes, UK has absolute advantage in production of cloth because, they are producing 12 units of cloth in per hour labor worked. and UK has absolute advantage in production of wheat as well because he can produce 10units of wheat in per hour labor worked.

b) UK should specialize in production of Wheat because he has lower opportunity cost than US and UK specialize in cloth as well. the country speciliaze trade in the good in which they have comparative advantage . UK has comparative advantage in production of wheat and cloth.

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