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Comparative + Absolute Advantage

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

Who has the ABSOLUTE advantage in making bracelets?

a)

Marie

b)

Isabella

2.

Who has the ABSOLUTE advantage in making earrings?

a)

Marie

b)

Isabella

3.

The producer that can produce the most output OR requires the least amount of inputs (resources)

a)

Comparative Advantage

b)

Trade Offs

c)

Absolute Advantage

d)

Opportunity Cost

4.

The producer with the lowest opportunity cost.

a)

Comparative Advantage

b)

Trade Off

c)

Absolute Advantage

d)

Opportunity Cost

5.

Joy gives 2 haircuts and 1 perm. Susie gives 3 haircuts and 2 perms. Who has the absolute advantage for haircuts?

a)

Joy

b)

Susie

6.

Ana takes 30 minutes to wash the dishes and one hour to vacuum the house. Her husband, Joe, takes 15 minutes to wash the dishes and 45 minutes to vacuum. Who has the absolute advantage for vacuuming?

a)

Ana

b)

Joe

7.
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes. 
Which country has the absolute advantage in producing airplanes? 
a)
Japan
b)
US
8.

From the last question, who has the absolute advantage in tools?

a)

Peru

b)

U.S.

c)

neither

d)

not enough info

9.

Using the same information from the last question, who has the absolute advantage in the production of cars?

a)

U.S.

b)

Peru

c)

neither

d)

not enough info

10.

Who has the comparative advantage in cars?

a)

Peru

b)

neither

c)

U.S.

d)

not enough info

11.

What should Peru export?

a)

cars

b)

tools

c)

love

d)

rainbows

12.

The U.S. can produce 10 ipads or 20 phones. China can produce 20 ipads or 30 phones. Who should produce what?

a)

U.S.-ipads

China- phones

b)

U.S. phones

China- ipads

c)

both should produce ipads

d)

they should not specialize

13.

Who has an absolute advantage in processed copra?

a)

Linavulu

b)

Bradyburg

14.

Who has the absolute advantage in handicrafts

a)

Bradyburg

b)

Linavulu

15.

Who has a comparative advantage in processed copra?

a)

Bradyburg

b)

Linavulu

16.

Who has a comparative advantage in handicrafts?

a)

Bradyburg

b)

Linavulu

17.

What country has an absolute advantage in the production of steel?

a)

Avagentina

b)

Gianluccistan

18.

Who has a comparative advantage in the production of computers?

a)

Tedville

b)

Racelland

c)

Both

d)

Indeterminate

19.

The basis of trade based from the lowest opportunity cost is considered as ____.

a)

Factor Endowment

b)

Adam Smith Theory

c)

Comparative Advantage

d)

Absolute Advantage

20.
The US can produce 1 ton of sugar using 4 acres of land, or they can produce 1 ton of avocados using 6 acres. 
Ecuador can produce 1 ton of sugar using 5 acres of land or 1 ton of avocados using 4 acres. 
Which country should produce avocados? 
a)
Ecuador
b)
US
c)
not enough information