Comparative Advantage and Terms of Trade
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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?
What is the opportunity cost of producing one of each product?
1
Who has the COMPARATIVE ADVANTAGE in cars and motorcycles?
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?
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?
What should be the terms of trade?
In other words, the two countries should trade 1 car for ___ motorcycles?