AP Advantages

Multiple Choice

Who has the absolute advantage in Pies? (i.e who makes the most)

• William

• David

Multiple Choice

Who has the absolute advantage in cakes? (i.e who makes the most)

• David

• William

Poll

Example:

Italy has to sacrifice 10 tanks to make one plane.

The US has to sacrifice 20 tanks for one plane.

Who has the comparative advantage in making planes?

• Italy

• US

Multiple Choice

Example:

In a year, Italy can make 5 planes. The US can make 8.

Who has the absolute advantage?

• Italy

• US

Multiple Choice

Who has the absolute advantage in trucks?

• US

• Japan

• Neither

Multiple Choice

Who has the comparative advantage in airplanes?

• US

• Japan

• Neither

Multiple Choice

Who should specialize in airplanes?

• Japan

• Neither

• US

Multiple Choice

What are the gains of trade?

• 1 truck for 1 airplane

• 1 truck for 3 airplanes

• 1/2 truck for 2 airplanes