Comparative Advantage and Terms of Trade

Last updated over 2 years ago
4 questions
Note from the author:
By the end of this goformative you should be able to:

1. Determine whether two countries, food trucks, or businesses should specialize and trade or not.
By the end of this goformative you should be able to:

1. Determine whether two countries, food trucks, or businesses should specialize and trade or not.
1

What is the opportunity cost of producing one of each product?

1

Who has the COMPARATIVE ADVANTAGE in cars and motorcycles?

  • cars
  • motorcycles
  • Korea
  • Germany
1

What should be the terms of trade?

In other words, the two countries should trade 1 car for ___ motorcycles?

1

What should be the terms of trade?
In other words, the two countries should trade 1 car for ___ motorcycles?