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- 1. Multiple Choice
Comparative advantages show:
outcomes without trading
who can make more items
competition within countries
who should produce what item at the lowest cost
- 2. Multiple Choice
What type of advantage shows who can make the most item?
absolute advantage
comparative advantage
- 3. Multiple Choice
Joy gives 2 haircuts and 1 perm. Susie gives 3 haircuts and 2 perms. Who has the absolute advantage for haircuts?
Joy
Susie
- 4. Multiple Choice
Jane takes 30 minutes to wash the dishes and one hour to vacuum the house. Her husband, Gary, takes 15 minutes to wash the dishes and 45 minutes to vacuum. Who has the absolute advantage for vacuuming? ( this scenario is unlikely)
Jane
Gary
- 5. Multiple Choice
True or False: It is better for countries to specialize and conduct trades given comparative advantage data.
True
False
- 6. Multiple ChoiceA focus on developing only certain skills or producing only certain goods/servicesImportsExportsSpecializationGlobalization
- 7. Multiple ChoiceGood and services produced at home and sold in other countriesImportsExportsSpecializationGlobalization
- 8. Multiple Choice
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the absolute advantage in producing airplanes?JapanUS - 9. Multiple ChoiceThe diagram shows the production possibilities curve for Country Y. Which of the following statements is true?If Country Y is producing at point C, it is using all its resources efficientlyThe opportunity cost of producing more machines is constantCountry Y cannot produce at point EThe most efficient point of production is point D
- 10. Multiple ChoiceSuppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true?Sam has an absolute advantage in making blanketsSam has neither a comparative nor an absolute advantage in knitting sweaters or making blanketsSam has a comparative advantage in making blanketsSam has a comparative advantage in knitting sweaters
- 11. Multiple ChoiceBased on the table provided, which one of the following statements is correct?Japan has the absolute advantage in producing carsJapan has the comparative advantage in producing carsThe United States has the absolute advantage in producing both cars and computersThe opportunity cost of producing a car in Japan is 1/2 a computer
- 12. Multiple ChoiceThe U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.?.5 tools.5 cars.75 cars1.3 tools
- 13. Multiple ChoiceWho has the comparative advantage in cake production?SarahMari
- 14. Multiple ChoiceWhich would represent acceptable terms of trade1 cake for 3 paper1 cake for 7 paper1 paper for 2 cake1 paper for 1/6 cake
- 15. Multiple ChoiceLana can bake 10 cakes in 8 hours, while Lenny can bake 4 cakes in 8 hours. Lenny has an Absolute Advantage in making cakes.TrueFalse
- 16. Multiple ChoiceThe country of Rockonya makes 1 television every 5 hours and 1 car every 20 hours, while the country of Jamonia makes 1 television every 24 hours and 1 car every 12 hours. Rockonya has a Comparative Advantage in making televisions.TrueFalse
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