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WorksheetsComparative advantage
Total questions: 9
Worksheet time: 13mins
Name
Class
Date
1.
The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?
a)
If Country Y is producing at point C, it is using all its resources efficiently
b)
The opportunity cost of producing more machines is constant
c)
Country Y cannot produce at point E
d)
The most efficient point of production is point D
2.
Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?
a)
Outputs
b)
Substitutes in Production
c)
Absolute Advantage
d)
Factors of Production
3.
The simplified production possibilities curves for country A and B are shown. Which one of the following statements is correct?
a)
Country A has the comparative advantage in both goods
b)
Country A has the comparative advantage in chairs & Country B has the comparative advantage in shirts
c)
Country B has the absolute advantage in shirts only
d)
Country A has the comparative advantage in shirts & Country B has the comparative advantage in chairs
4.
Based on the table provided, which one of the following statements is correct?
a)
Japan has the absolute advantage in producing cars
b)
Japan has the comparative advantage in producing cars
c)
The United States has the absolute advantage in producing both cars and computers
d)
The opportunity cost of producing a car in Japan is 1/2 a computer
5.
Suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true?
a)
Sam has an absolute advantage in making blankets
b)
Sam has neither a comparative nor an absolute advantage in knitting sweaters or making blankets
c)
Sam has a comparative advantage in making blankets
d)
Sam has a comparative advantage in knitting sweaters
6.
Which of the following constitute the fundamental questions every economic system must answer?
a)
I, III, V only
b)
I, II, and IV only
c)
I, II, and V only
d)
II, IV, and V only
7.
Which phrase best completes this diagram?
a)
Manual labor
b)
Limited communication
c)
Diverse economy
d)
Specialized production
8.
Countries will export goods and services that they can produce at lower costs. This is called —
a)
oligarchy
b)
monopoly
c)
comparative advantage
d)
capitalism
9.
The nation's ability to produce general goods more efficiently than another entity is referred to as?
a)
Specialization
b)
Comparative Advantage
c)
Opportunity Cost
d)
Absolute Advantage
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