Comparative Advantage

Which country has an absolute advantage in producing planes?

• USA

• China

• Both countries

• Neither country

What is the per unit opportunity cost for the USA to produce one plane?

• 1/3 toy

• 3 toys

• 1/5 toy

• 5 toys

Which country has a comparative advantage in producing toys?

• USA

• China

• Both countries

• Neither country

Which of the following terms of trade for 1 plane would benefit both the USA and China?

• 2 toys

• 3 toys

• 4 toys

• 5 toys