Change: Note: When solving for comparative we need to assume that each of the countries has constant opporunity costs of production between the two products, and that both economies have full employment at all times soybeans avocados Mexico 15 60 USA 30 90USA has the absolutel advantage of both products.   View changes from previous version. (Word count: 438)

Change: The use of resources to product one or few products.Production Possibilities Analysis: "Specialization is economically desirable because it results in more efficient production." In the space below, explain this statement. Assumptions and comparative costs: Comparative advantage: A lower relative opportunity cost than that of   View changes from previous version. (Word count: 347)

Change: absolutelyabsolutel advantage of both products.comparativeComparative advantages:Opportunity costs for Mexico to produce a)soybeans b)avocados: 60/15=4, 15/60=1/4Opportunity costs for USA to produce a)soybeans b)avocados: 90/30=3, 30/90=1/3Mexico has the comparative advantage of avocados, therefore should spcialize in avocados.USA has the comparative advantage   View changes from previous version. (Word count: 336)

Change: Absolute advantage: when a producer produces more total products than another producer Base on comparative advantage, we can find out which country is more fit for producing specific product with fixed resources. Terms of trade: terms that are mutually beneficial to the two   View changes from previous version. (Word count: 308)

Change: product with fixed resources. Terms of trade: terms that are mutually beneficial to the two countries in trade. Where the trade leaves both countries better off than they were originally Gains from Specialization and Trade: Specialization based on comparative advantage improves global resource   View changes from previous version. (Word count: 154)

Change: the same total inputs or world resources and technology. Countries can overcome the restrictions of their production possibilities frontier through specialization. Trade combined with specialization can ensure that consumers of both countries have the goods they need and the goods they want.   View changes from previous version. (Word count: 131)

Change: iconomicallyeconomically desirable because it results in more efficient production." In the space below, explain this statement. Assumptions and comparative costs:Comparative advantage: A lower relative opportunity cost than that of another producer or country. Terms of trade: terms that are mutually beneficial to   View changes from previous version. (Word count: 98)

Change: in more efficient production." In the space below, explain this statement. Assumptions and comparative costs: Terms of trade: terms that are mutually beneficial to the two countries in trade. Where the trade leaves both countries better off than they were originally Gains from Specialization and Trade:   View changes from previous version. (Word count: 56)

Change: Created by welkerjason Aug 20 2007, 11:50 PM EDT for: no reason given