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- 1. Multiple ChoiceA benefit, profit, or value of something that must be given up to acquire or achieve something else.Opportunity CostComparative AdvantageSpecializationProduction
- 2. Multiple ChoiceThe benefit or advantage of an economy to be able to produce a commodity at a lesser opportunity cost than other entities is referred to asOpportunity CostAbsolute AdvantageComparative AdvantageGrowth
- 3. Multiple ChoiceOpportunity Cost is often measured in?Absolute AdvantageProduction TimeCostResources
- 4. Multiple ChoiceThe nation's ability to produce general goods more efficiently than another entity is referred to as?SpecializationComparative AdvantageOpportunity CostAbsolute Advantage
- 5. Multiple ChoiceTo figure out a nation's comparative advantage, you compare their _________ to other entities?Absolute AdvantageOpportunity CostResourceRevenue
- 6. Multiple Choice_______________ promotes cheaper production costs, and the nation's economies are able to benefit.Production timeGlobal WarmingResource LimitationComparative Advantage
- 7. Multiple ChoiceIf Japan and the United States can both produce cars, but Japan can produce cars of a higher quality at a faster rate, then it is said to have an _____________________ in the auto industryComparative AdvantageAbsolute AdvantageOpportunity CostSpecialization
- 8. Multiple ChoiceFrance has enough resources to produce wine or cheese, but not enough to produce both. France can produce 20 units of wine or 10 units of cheese. In this situation, France should produce wine due to ________________Comparative AdvantageOpportunity CostAbsolute AdvantageProduction Rate
- 9. Multiple ChoiceFrance can produce 20 units of wine or 10 units of cheese. Italy can produce 30 units of wine or 22 units of cheese. Italy has the ______________Absolute AdvantageComparative AdvantageEconomic AdvantageResource Advantage
- 10. Multiple ChoiceFrance can produce 20 units of wine or 10 units of cheese. Italy can produce 30 units of wine or 22 units of cheese. France will produce wine due to _________________Absolute AdvantageOpportunity CostSpecializationComparative Advantage
- 11. Multiple Choice
The simplified production possibilities curves for country A and B are shown. Which one of the following statements is correct?Country A has the comparative advantage in both goodsCountry A has the comparative advantage in chairs & Country B has the comparative advantage in shirtsCountry B has the absolute advantage in shirts onlyCountry A has the comparative advantage in shirts & Country B has the comparative advantage in chairs - 12. 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
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