WorksheetsPPC, Comparative Advantage, Trade
Total questions: 5
Worksheet time: 3mins
Which of the following will cause an outward shift of the PPC?
An decrease in the amount of resources available
A technological change that improves production
An increase in demand for a product
The opportunity to produce another product
A shift in the priorities of the manufacturer
There are opportunities for mutually beneficial trade between two countries whenever:
no country has an absolute advantage in producing both goods.
the production possibilities curves of the two countries are identical.
each country has a comparative advantage in making something.
the countries are similar in size.
one can produce more of everything than the other.
France and England both produce wine and cloth under conditions of constant opportunity costs. France will have a comparative advantage in wine production if:
it can produce more wine than England.
its labor productivity in wine production is greater than England's.
the absolute cost of producing wine is lower in France than in England.
the opportunity cost of wine production is lower in France than in England.
it can produce more cloth than England.
Which of the following is a true statement about the graph?
Country A has an absolute advantage in wheat and textile production.
Country B has an absolute advantage in wheat and textile production.
Country A has an absolute advantage in wheat production.
Country B has an absolute advantage in wheat production.
Country A has an absolute advantage in textile production.
Which PPC represents unemployment in an economy?
