Economics of Trade

Fill in the blank: Competitive Advantage is a product that a country is better at producing than ______.

• A) its competitors

• B) other countries

• C) itself

• D) the market

Which of the following statements is true?

• Absolute Advantage and Competitive Advantage are the same.

• Absolute Advantage is about efficiency in resource use.

• Competitive Advantage is about efficiency in resource use.

• Neither Absolute nor Competitive Advantage involves efficiency.

Fill in the blank: A country with ______ Advantage can produce a product more efficiently than other countries.

• Competitive

• Absolute

• Relative

• Comparative

Which country has an absolute advantage in peaches?

• Canada

• United States

• Both

• Neither

What is the total number of apples produced by Canada and the United States combined?

• 1,000

• 1,200

• 2,200

• 1,300