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Homework 1 (Microeconomic)

1. The document is a homework assignment submitted by a student named Im Akrunkonghong. It contains answers to 5 questions about comparative advantage, factors contributing to the US entertainment industry's success, specialization and poverty, impacts of reduced work hours on production, and effects of productivity-boosting technology. 2. For question 1, the student defines comparative advantage as having a lower opportunity cost of performing a task than another person, and absolute advantage as taking fewer hours to perform a task. 3. Question 2 is answered by citing technological development, research spending, entrepreneurial culture, and skilled labor as reasons for US dominance in movies, music and books exports.

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74 views2 pages

Homework 1 (Microeconomic)

1. The document is a homework assignment submitted by a student named Im Akrunkonghong. It contains answers to 5 questions about comparative advantage, factors contributing to the US entertainment industry's success, specialization and poverty, impacts of reduced work hours on production, and effects of productivity-boosting technology. 2. For question 1, the student defines comparative advantage as having a lower opportunity cost of performing a task than another person, and absolute advantage as taking fewer hours to perform a task. 3. Question 2 is answered by citing technological development, research spending, entrepreneurial culture, and skilled labor as reasons for US dominance in movies, music and books exports.

Uploaded by

DeGOAT Uy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Im Akrunkonghong Prof.

Ky Sereyvath
Group: A
ID: JD18-0635

Homework 1

1. Explain what “having a comparative advantage” at producing a particular goods or


service means.
 One person has a comparative advantage over another if his or her opportunity cost of
performing a task is lower than the other person’s opportunity cost.
What does “having an absolute advantage” at producing a good or service mean?
 One person has an absolute advantage over another if he or she takes fewer hours to
perform a ask than the other person.

2. What factors have helped the United States to become the world’s leading exporter of
movies, books and popular music?
 Televisions and video reorders were developed and first produced in United States
 Technological research
 High expenditure on the development of electronic components for the military and a
culture that actively encourages entrepreneurship.
 Skilled labour
 Factory located in high-wage country like the United States.

3. Why does saying that people are poor because they do not specialize make more sense
than saying that people perform their own services because they are poor?
 When people are poor and not specialize in something, they tend to make time to
perform every task on their own rather than concentrating on one specific task that
give them the most profits. In fact, that specialization boost productivity does not
mean that more specialization is better the less. When people tend to enjoy variety of
task they do, yet variety tend to be one of the first causalities as workplace task
become even more narrowly specialize.

4. How will a reduction in the number of hours worked each day affect an economy
production possibilities curve?
 A reduction in the number of hours worked each day affect an economy’s production
possibilities curve by making an economy’s productivity curve shift inwards because
when people work less time each day, we can assume that there will be less products
manufactured due to the facts that the production are depend on labor.
Name: Im Akrunkonghong Prof. Ky Sereyvath
Group: A
ID: JD18-0635

5. How will technological innovations that boost labor productivity affect an economy’s
production possibility curves? –

 Technological innovation that boost labor productivity affects an economy’s


production possibilities curve by making an economy’s production curve shift
outwards because the improvement in knowledge and technology cause the PPC to
shift outwards and there will be an increase in productivity since people will be taking
less time to produce a product.

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