E-Learning Video Question (I bundled them because the cost of creating five separate posts and viewing the responses is not worth the extra time put into writing this post)

E-Learning Video Question (I bundled them because the cost of creating five separate posts and viewing the responses is not worth the extra time put into writing this post)

by Evan Weisheit -
Number of replies: 0
  1. Why is "absolute advantage" not simply called "advantage?"
  2. Imagine Japan can produce one car for one food, but America can produce ten cars for ten foods (the opportunity costs were intentionally made equal). Neither country has a comparative advantage, so can trade benefit both countries?
  3. How do the specific terms of trade get decided? For example, if Brazil can make one plane for six cars and America can make one plane for ten cars, how many cars will it cost America to acquire one plane (7, 8, or 9)?
  4. What happens if Russia needs 10 food and America, who has a comparative advantage in food, can only trade eight food because America needs some food for itself?
  5. What will China produce if it can make ten food for one car (Pakistan can make one food for one car), but cars are a $1000 profit and food is a $5 profit?