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IT2: Absolute advantage, comparative advantage, benefits of trade
By Jeffrey See
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Last updated over 6 years ago
5 questions
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Question 1
1.
Question 2
2.
Question 3
3.
Question 4
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Question 5
5.
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
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
Which country above has the
comparative advantage
in cars?
Neither country
Country B
Country A
Both countries
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
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
