Comparative and Absolute Advantage

Multiple Choice

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

• Opportunity Cost

• Comparative Advantage

• Specialization

• Production

Multiple Choice

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

• Imports

• Exports

• Specialization

• Globalization

Multiple Choice

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

• Outputs

• Substitutes in Production

• Absolute Advantage

• Factors of Production

Multiple Choice

The USA sells pork to China. This is an example of....

• import

• export

• teleport

• Slime plort

Multiple Choice

India sells rice to the USA

• import

• export

• teleport

• Slime plort

Multiple Choice

If Japan and the United States can both produce cars, but Japan can produce cars of a higher quality at a faster rate, then it is said to have an _____________________ in the auto industry

• Comparative Advantage

• Absolute Advantage

• Opportunity Cost

• Specialization

Multiple Choice

Joy gives 2 haircuts and 1 perm. Susie gives 3 haircuts and 2 perms. Who has the absolute advantage for haircuts?

• Joy

• Susie

Multiple Choice

Ana takes 30 minutes to wash the dishes and one hour to vacuum the house. Her husband, Joe, takes 15 minutes to wash the dishes and 45 minutes to vacuum. Who has the absolute advantage for vacuuming?

• Ana

• Joe

Multiple Choice

Absolute Advantage is the ability of a nation or region to produce more of a certain product than another country or region.

• True

• False

Multiple Choice

The chart shows how many tons of crops each country can produce per year.

What is the opportunity cost if China chooses to grow wheat?

• 2 potatoes

• 1 potato

• 100 wheat

• 1.25 potato

Multiple Choice

The chart shows how many tons of crops each country can produce per year.

What is the opportunity cost if India chooses to grow wheat?

• 2 potatoes

• 1 potato

• 100 wheat

• 1.25 potato

Multiple Choice

The chart shows how many tons of crops each country can produce per year.

Which country has absolute advantage for producing wheat?

• India

• China

• Need more information

Multiple Choice

The chart shows how many tons of crops each country can produce per year.

Which country has comparative advantage for growing wheat?

• India

• China

• Need more information

Multiple Choice

The chart shows how many tons of crops each country can produce per year.

Which country has comparative advantage for growing potatoes?

• India

• China

• Need more information

Multiple Choice

Opportunity Cost is often measured in?

• Absolute Advantage

• Production Time

• Cost

• Resources

Multiple Choice

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

• Opportunity Cost

• Absolute Advantage

• Comparative Advantage

• Growth

Multiple Choice

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.

Which statement is true?

• Rockonya has a Comparative Advantage in making televisions.

• Jamonia has a Comparative Advantage in making televisions.

Multiple Choice

France can produce 20 units of wine or 10 units of cheese. Italy can produce 30 units of wine or 22 units of cheese. France will produce wine due to _________________

• Absolute Advantage

• Opportunity Cost

• Specialization

• Comparative Advantage

Multiple Choice

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.

• True

• False

Multiple Choice

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.

• Amystan has absolute advantage

Multiple Choice

One country can have a Comparative Advantage over another country with some products, and an Absolute Advantage over that same country in another product.

• True

• False

​Note that this type of graph is for one country!

These are the possible combinations of two goods they can produce

Multiple Choice

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

Multiple Choice

The opportunity cost of increasing production from 7 to 9 trucks is

• Scarcity
• 2 boats
• 2 trucks
• 3 boats

Multiple Choice

The opportunity cost of increasing production from 4 to 7 boats is

• 1 boat

• 2 boats

• 2 trucks

• 3 trucks

Multiple Choice

What does point Y represent on the PPC?

• Efficiency

• Unattainable / impossible

• Inefficency

• Nothing

Multiple Choice

What does point B represent?

• Production at greater than the country's minimum potential

• Production is less than the country's minimum potential

• Productive inefficiency

• Productive efficiency

Multiple Choice

Which point represents "resources are not being used efficiently, or resources are being wasted or idle"?

• Point A

• Point Y

• Point X

• All of the above

Multiple Choice

Based on the table, if the country is currently producing at point B and decides to produce at point C, the opportunity cost for the additional pair of shoes is ____ pizzas.   

• 26

• 23

• 3

• 2