> 4. Suppose that because of climate or some other reason, Country A’s wheat farmers have higher productivity th?

4. Suppose that because of climate or some other reason, Country A’s wheat farmers have higher productivity th?

Posted at: 2015-03-12 
This is absolute advantage.

The answer to b is yes in reality, but the answer they are looking for is no.

Transportation costs could disappear the productivity advantage. Also, if A makes some other product 4 times as well, it is better off producing more of the other product and letting B produce wheat, which would then be called a comparative advantage for B.

You might do better asking this in "homework help" or "economics", rather than "global warming".

https://en.wikipedia.org/wiki/Comparativ... should answer your first question, and for your second, keep in mind that if there is a comparative advantage, the country with the comparative advantage will tend to export to the other country, even if the other country has an absolute advantage.

Let me clarify that absolute advantage thing real quick. It's useful to think of economic things very simply, so think of an assembly line with just two workers doing to separate jobs. If worker 1 could do both jobs faster than worker 2 would it make sense for him to do the whole job himself? Not at all, it would go much faster even if worker 2 is slower at his job.

Global Warming ended in 2012, confirmed by our Satelite reports 11/28/2012 that ICE accumulation has returned after 36 + years of Global Warming. Mike

4. Suppose that because of climate or some other reason, Country A’s wheat farmers have higher productivity than Country B’s wheat farmers. That is, on the same size farm, Country A can grow twice as much wheat as Country B with the same amount of labor.

a) Is this an example of absolute advantage or comparative advantage? Explain.

b) Does this mean Country A will necessarily export wheat to Country B? Explain.