If you could answer this question to #4 of Krugman and Wells Macroeconmocis 4th
ID: 1189121 • Letter: I
Question
If you could answer this question to #4 of Krugman and Wells Macroeconmocis 4th edition on page 47 it would be great help. unsure about my answer. if you answer no to b, please explain what information is missing to find out who has the absolute advantage and how one might find out who has it.
Thanks!!
Spaghetti? Which has AUVUUU the Copelay nent of meatball production? In spaghetti production? artistics United 4. One July, the United States sold aircraft worth $1 bil. lion to China and bought aircraft worth only $19,000 from China. During the same month, however, the ushels United States bought $83 million worth of men's billion trousers, slacks, and jeans from China but sold only Corn $8,000 worth of trousers, slacks, and jeans to China. oduc Using what you have learned about how trade is deter ng 1 mined by comparative advantage, answer the follow els of ing questions. asing a. Which country has the comparative advantage in have aircraft production? In production of trousers, ecide slacks, and jeans? and b. Can you determine which country has the absolute cient advantage in aircraft production? In production of as to trousers, slacks, and jeans? g in a rmers cornExplanation / Answer
a) The United states have comparative advantage in Aircraft production than China. And China have comparative advantage in production of trousers, slacks and jeans than United states.
b) The United states have absolute advantage in Aircraft production than China. And China have absolute advantage in production of trousers, slacks and jeans than United states.Because the absolute advantage refers to a country’s ability to produce a certain good more efficiently than another country.