WorksheetsGUESS THE CLASSICAL TRADE THEORIES
Total questions: 8
Worksheet time: 6mins
Country X imposes heavy tariffs on imported goods to protect its gold reserves and promote local industries.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country Y’s king orders colonies to only sell raw materials to the home country, keeping all wealth within the empire.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country A can produce 10 tons of cocoa using the same resources that Country B uses to make only 3 tons.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country B can produce ships at a lower cost and in less time compared to any other country in the region. This makes Country B the most efficient shipbuilder.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Even though Country C can produce both coffee and cheese more efficiently than Country D, it specializes in coffee because its opportunity cost of producing coffee is lower than producing cheese.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country D is less efficient than Country E in producing both shoes and electronics, but it specializes in shoes because the opportunity cost of producing shoes is lower than producing electronics.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country F exports wheat because it has abundant fertile land and a relatively small population.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
Country G focuses on producing and exporting software because it has a large, highly skilled tech workforce.
MERCANTILISM
ABSOLUTE ADVANTAGE
COMPARATIVE ADVANTAGE
FACTOR ENDOWMENT THEORY
