WorksheetsFinding your trade advantage
Total questions: 12
Worksheet time: 12mins
The producer that can produce any given level of output at lowest cost
Comparative Advantage
Trade Offs
Absolute Advantage
Opportunity Cost
The theory of comparative advantage implies that Alpha would find it advantageous to
export grain and import steel
export steel and import grain
export both grain and steel and import nothing
import both grain and steel and export nothing
trade 1 ton of grain for 0.5 ton of steel
Based on the table provided, which one of the following statements is correct?
Japan has the absolute advantage in producing cars
Japan has the comparative advantage in producing cars
The United States has the absolute advantage in producing both cars and computers
The opportunity cost of producing a car in Japan is 1/2 a computer
The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.?
.5 tools
.5 cars
.75 cars
1.3 tools
What is the opportunity cost of making 1 car in Peru?
.5 cars
.75 tools
1.3 tools
2 tools
What should the U.S. import?
cars
tools
both
not enough info
What is the opportunity cost of producing a tool in the U.S.?
.5 cars
.75 tools
2 cars
1.3 cars
The U.S. can produce 10 ipads or 20 phones. China can produce 20 ipads or 30 phones. Who should produce what?
U.S.-ipads
China- phones
U.S. phones
China- ipads
both should produce ipads
they should not specialize
What is the opportunity cost of producing 1 ipad in the U.S.?
2 phones
1.5 phones
.5 phones
.33 phones
