Quiz on Comparative Advantage

Which of the following is an example of capital accumulation?

• Division of labour

• Natural resources

• Weather

• Education

What is an example of talent as a source of comparative advantage?

• Natural resources

• Institutions

• Natural and acquired aptitudes

• Weather

Which of the following is NOT a source of comparative advantage mentioned?

• Natural resources

• Weather

• Capital accumulation

• Institutions

What does specialization add to?

• Productivity

• Confusion

• Laziness

• Boredom

What can trade increase?

• Competition

• Loneliness

• Sadness

• Anger

What does each person consume without trade?

• Only what they produce

• Everything they want

• Nothing at all

• What others produce

What is the effect of trade on consumption?

• Greater and more varied

• Less and more limited

• Same and unchanged

• Worse and less varied

What is one benefit of trade mentioned in the text?

• Trade benefits society broadly

• Trade increases pollution

• Trade decreases communication

• Trade stops transportation

What is a negative effect of trade according to the text?

• Some industries suffer, and people lose their jobs

• Trade increases happiness

• Trade creates more jobs

• Trade reduces costs

What supports business according to the text?

• Legal framework

• Weather conditions

• Cultural differences

• Language barriers