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IT2: Absolute advantage, comparative advantage, benefits of trade

Last updated about 6 years ago

5 questions

1

1

1

1

1

Question 1

1.

A country that can produce more than another country using the same amount of resources is called

Complete advantage

Absolute advantage

Unilateral advantage

Comparative advantage

Question 2

2.

Which country above has the absolute advantage in cars and/or bikes?

Country A has the absolute advantage in both products

Country B has the absolute advantge in bikes and country A in cars

Country A has the absolute advantage in cars and country B in bikes

Country B has the absolute advantage in both products

Question 3

3.

Which country above has the comparative advantage in cars?

Neither country

Country B

Country A

Both countries

Question 4

4.

A country that can produce output at a lower opportunity cost relative to another country is called

Unilateral advantage

Complete advantage

Comparative advantage

Absolute advantage

Question 5

5.

Which of the following is NOT a benefit of trade?

More total world output

Greater variety of goods available to consumers

Higher prices paid by consumers

More efficient use of resources