Comparative Advantage

Front

The diagram shows the production possibilities curve for Country Y. Which of the following statements is true? If Country Y is producing at point C, it is using all its resources efficiently, The opportunity cost of producing more machines is constant, Country Y cannot produce at point E, The most efficient point of production is point D

Back

If Country Y is producing at point C, it is using all its resources efficiently

Front

Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?

Back

Productive resources

Front

The U.S. can produce 30 toys and 15 beds. Canada can produce 10 toys and 12 beds. Who has the absolute advantage in toys?

Back

U.S.

Front

A benefit, profit, or value of something that must be given up to acquire or achieve something else.

Back

Opportunity Cost

Front

The benefit or advantage of an economy to be able to produce a commodity at a lesser opportunity cost than other entities is referred to as

Back

Comparative Advantage

Front

The nation's ability to produce more general goods than another entity is referred to as

Back

Absolute Advantage

Front

To figure out a nation's comparative advantage, you compare their _________ to other entities

Back

Opportunity Cost

Front

In one week, Sam can knit 5 sweaters or make 4 blankets, and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true?

Back

Sam has a comparative advantage in making blankets.

Front

If nations specialize according to their comparative advantage and engage in trade with each other, each nation can:

Back

Consume outside its production possibilities curve

Front

A focus on developing only certain skills or producing only certain goods/services

Back

Specialization