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steve22's avatar

How does the theory of comparative advantage relate to production possibility curves?

Asked by steve22 (53 points ) September 7th, 2010

How does the theory of comparative advantage relate to production possibility curves?

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21 Answers

Whitsoxdude's avatar

What homework is this for?

steve22's avatar

Microeconomics.
Also, What’s the difference between Widget and Wadget? What do they mean?

Seaofclouds's avatar

This might help you with the comparative advantage. Could widget and wadget just be terms they are using for an example in your class? I’ve never heard of a wadget.

Just so you know, per Fluther guidelines, we aren’t really suppose to give you the exact answers to your homework. We can point you in the right direction for finding them yourself, but we aren’t suppose to give the answer.

steve22's avatar

There’s a question: Show how a production possibility curve would shift if a society became more productive in its outputs of widgets but less productive in its outputs of wadgets. (What’s widgets and wadgets?)

Seaofclouds's avatar

@steve22 In economics, widget is generally referred to as any product. It’s just a general term they use instead of saying a specific object. My guess is that wadget is also a general term and they just want you to compare two items. You should ask your teacher/professor to be sure.

augustlan's avatar

Widgets and wadgets are just silly words to substitute for a product. So widgets would be product A, and wadgets would be product B.

steve22's avatar

So how would you answer this: If workers in China and India become as productive as U.S. workers, what adjustments will allow the U.S. to regain its competitiveness?

Seaofclouds's avatar

I would answer it by discussing what the U.S. would have to do get ahead of China and India again (since they were ahead and now would be becoming equals).

Jeruba's avatar

Are you expected to answer these questions without any help at all from (a) your lecture notes, (b) your textbook, and (c ) class handouts? Man, that is one unreasonable assignment.

augustlan's avatar

@steve22 Well, we wouldn’t answer it, since it is your homework. As @Seaofclouds pointed out earlier, we’ll happily give you a nudge in the right direction, but it’s against Fluther guidelines to actually do your homework for you.

steve22's avatar

Thank you all for your helpless helps!!

Response moderated (Unhelpful)
Steve_A's avatar

My fellow Steve, I shall enlighten you with the guide lines.

http://www.fluther.com/help/guidelines/question-specific/

“Homework Questions
Feel free to ask for help on your subject, but simply posting your homework question verbatim and expecting an answer is rude! We’re not here to do your homework for you.”

As everyone said asking someone to flat out do your homework is pretty rude, and it does not help you learn anything.

For example it is ok to ask for someone to explain it in layman terms or in another way to understand or learn something.

Response moderated (Unhelpful)
steve22's avatar

WHO SAID THIS IS A HOMEWORK QUESTION?!!! CALM DOWN COMMUNITY!

augustlan's avatar

@steve22 A) It’s pretty obvious, and B) you did. See that ‘homework’ tag up there in your topics?

Seaofclouds's avatar

@steve22 You also told @Whitsoxdude it was for microeconomics when he asked you what homework it was for.

steve22's avatar

Come on! It’s related to Microeconomics as a subject but it’s not the exact homework question. I don’t even have it as a homework.. It’s just a question I approached in the chapter while I was reading it, and wanted some explanations and answers for it. That doesn’t necessary make it a Homework question.

Seaofclouds's avatar

@steve22 No offense, but you asked a specific question (the one about China and India) that sounds very similar to the type of homework questions I had when I was in economics. Not to mention I saw the questions you posted that got pushed back for editing before they were pushed back to you and they were clearly homework questions. We aren’t trying to be rude. We are trying to explain to you what the guidelines are for this site so that you know what you can expect to get as answers and what not to expect.

cazzie's avatar

Comparative advantage is a company’s ability to produce something at a lower cost, right?

http://en.wikipedia.org/wiki/Comparative_advantage This could help.

I wish I was sitting next to you right now to help. I did production accounting for several years. This is right up my alley. As per, Fluther guidelines, we’ll help but can’t give you an outright answer.
If you are reading the text and understanding the definitions of the words, you should be coming to the answers yourself. Is there a word or initial concept you don’t get?

LostInParadise's avatar

The technical definition of comparative advantage is somewhat involved but the basic idea is that overall production is maximized when regions produce what is most profitable for them even if some other region can produce the same item more cheaply. Have you been paying attention in class?

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