Trade and Advantages Practice - Ellis

Front

The producer that can produce the most output

Back

Absolute Advantage

Front

The producer with the lowest opportunity cost.

Back

Comparative Advantage

Front

If the United States can produce more airplanes than China then the U.S. has a _____ in the production of airplanes.

Back

Absolute advantage

Front

If China can produce shoes with a lower cost than the United States then China has a ______ in the production of shoes.

Back

Comparative advantage

Front

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

Back

Specialization

Front

The country of Joetopia produces 4 billion gallons of cola, while the country of Amystan makes 400 million gallons of soda. Joetopia has an Absolute Advantage.

Back

True

Front

Who has the absolute advantage in potatoes?

Back

Frodo

Front

Who has the absolute advantage in corn?

Back

Sam

Front

Who has the comparative advantage in corn?

Back

Sam

Front

Who has the comparative advantage in potatoes?

Back

Frodo