Advantages Practice

The producer that can produce the most output

• Comparative Advantage

• Trade Offs

• Absolute Advantage

• Opportunity Cost

The producer with the lowest opportunity cost.

• Comparative Advantage

• Trade Off

• Absolute Advantage

• Opportunity Cost

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

• Absolute advantage

• Comparative advantage

• Economic advantage

• Resource advantage

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

• Absolute advantage

• Comparative advantage

• Economic advantage

• Resource advantage

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

• Imports
• Exports
• Specialization
• Globalization

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.

• True
• False

Who has the absolute advantage in potatoes?

• Sam

• Frodo

• Neither

• Both

Who has the absolute advantage in corn?

• Sam

• Frodo

• Neither

• Both

Who has the comparative advantage in corn?

• Sam

• Frodo

• Neither

• Both

Who has the comparative advantage in potatoes?

• Sam

• Frodo

• Both

• Neither