Absolute Advantage (English)

What is absolute advantage?

• The ability to export goods without restrictions

• The ability to produce goods at a lower cost than others

• The ability to produce goods more efficiently than others

• The ability to import goods without tariffs

In which year did Vietnam start exporting more than 1 million tons of rice?

• 1980

• 1985

• 1989

• 1990

Which country has an absolute advantage in wheat production if Country A can produce 1 ton with 10 hours and Country B requires 15 hours?

• Both countries

• Neither country

• Country B

• Country A

What does the concept of absolute advantage help explain?

• Why trade barriers are necessary

• Why all countries benefit equally from trade

• Why countries import more than they export

• Why some countries focus on producing certain goods

Who first stated the idea of absolute advantage?

• Milton Friedman

• Adam Smith

• John Maynard Keynes

• David Ricardo

What is the relationship between supply conditions and trade according to the text?

• Trade arises due to differences in supply conditions

• Trade is only based on consumer preferences

• Trade is not influenced by supply or demand

• Trade arises due to differences in demand conditions

What limitation is mentioned regarding absolute advantage?

• Absolute advantage is not relevant in modern economics

• A country may have an absolute advantage in everything

• All countries will benefit equally from trade

• Not everyone in a country will benefit from trade

What is the main focus of trade theory according to the text?

• Consumer preferences

• Supply-side differences among countries

• Demand-side differences among countries

• Government regulations

What does the term 'gain from trade' refer to?

• The benefits of producing goods domestically

• The advantages of importing goods

• The benefits of engaging in international trade

• The disadvantages of trade barriers

What is one reason Vietnam may have an absolute advantage in rice production?

• Higher labor costs than Japan

• Lower prices for inputs used in production

• More advanced technology in Japan

• Higher tariffs on rice exports