Absolute and Comparative Advantage

Front

What is the opportunity cost of producing a car in the U.S. if the U.S. can produce 50 cars and 25 tools, and Peru can produce 20 cars and 15 tools?

Back

.5 tools

Front

The U.S. can produce 10 ipads or 20 phones.  China can produce 20 ipads or 30 phones. Who should produce what? Options: U.S.-ipads
China- phones, U.S. phones
China- ipads, both should produce ipads, they should not specialize

Back

U.S. phones
China- ipads

Front

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

Back

Specialization

Front

Which country has the absolute advantage in producing airplanes? The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.

Back

US

Front

Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need?

Back

Resources are not evenly distributed among countries.

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

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

Based on the table provided, which one of the following statements is correct? Options: Japan has the absolute advantage in producing cars, Japan has the comparative advantage in producing cars, The United States has the absolute advantage in producing both cars and computers, The opportunity cost of producing a car in Japan is 1/2 a computer

Back

The opportunity cost of producing a car in Japan is 1/2 a computer

Front

Lana can bake 10 cakes in 8 hours, while Lenny can bake 4 cakes in 8 hours. Lenny has an Absolute Advantage in making cakes.

Back

False

Front

The country of Rockonya makes 1 television every 5 hours and 1 car every 20 hours, while the country of Jamonia makes 1 television every 24 hours and 1 car every 12 hours. Rockonya has a Comparative Advantage in making televisions.

Back

True