ABM170 Dd quiz3

The producer that can produce the most output or requires the least amount of inputs has the

• comparative advantage

• absolute advantage

• production advantage

• trading advantage

If a nation can produce more of a certain product than another country, that country has

• comparative advantage

• absolute advantage

• production advantage

• trading advantage

The United States can produce 5 planes and 3 ships a day. Japan can produce 4 planes and 4 ships a day. Which country has an absolute advantage in the production of planes?

• Both countries

• Japan

• Neither country

• United States

George can dust a room in 20 minutes and mop a room in 30 minutes. Ben can dust a room in 25 minutes and mop a room in 25 minutes. Who has absolute advantage in dusting?

• Ben

• Both Ben and George

• George

• Neither Ben nor George

The producer with the lower opportunity cost has the

• comparative advantage

• absolute advantage

• production advantage

• trading advantage

A country is said to have comparative advantage if it can produce a product

• in larger numbers than other countries.

• using less workers than other countries.

• at a lower opportunity cost than other countries.

• with higher standards than other countries.

Comparative advantage means that a country

• limits production of capital goods.

• engages in restricted global trade.

• imports more than it exports

• can produce a product more efficiently than another country.

The United States can produce 5 computers and 1 radio a day. Japan can produce 4 computer and 4 radios a day. Which country has comparative advantage in the production of radios?

• Both countries

• Japan

• Neither country

• United States

John can produce 5 shirts or 20 hats. Jan can produce 8 shirts or 16 hats. Who should specialize and produce shirts?

• John

• Jan

• Both John and Jan

• Neither John nor Jan

Because Vietnam specializes in the production of rice, and Philippines specializes in the production of coconuts, these two countries could engage in trade that is beneficial to both states. This economic concept is known as

• specialized consumption

• supply and demand

• absolute advantage

• comparative advantage