Chapter 33: Q. 1. (page 802)
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
The statement is not true i.e. it is false statement.
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You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your roommates, however, are slackers and do not clean up after themselves. You, on the other hand, can clean faster than each of them. You determine that you are 70% faster at dishes and 10% faster with vacuuming. All of these tasks have to be done daily. Which jobs should you assign to your roommates to get the most free time overall? Assume you have the same number of hours to devote to cleaning. Now, since you are faster, you seem to get done quicker than your roommate. What sorts of problems may this create? Can you imagine a trade-related analogy to this problem?
Why might intra-industry trade seem surprising from the point of view of comparative advantage?
Do consumers benefit from intra-industry trade
How can there be any economic gains for a country from both importing and exporting the same good, like cars?
Why does the United States not have an absolute advantage in coffee?
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