Quiz for:
Understanding Comparative Advantage in Trade

Question 1

What is Ashley's opportunity cost for vacuuming?

Question 2

Which term would represent a mutually beneficial trade for 1 ton of grain?

Question 3

In the input example, who has the absolute advantage in vacuuming?

Question 4

What mutually beneficial trade term is suggested for mopping in the example?

Question 5

What outcome can arise if trade terms are outside the mutually beneficial range?

Question 6

What defines absolute advantage in an economic context?

Question 7

How is comparative advantage determined?

Question 8

What is the opportunity cost for Big Country producing 1 ton of meat?

Question 9

What resource can students use for additional practice on comparative advantage?

Question 10

Who has the comparative advantage in mopping in the input example?

Question 11

How does specialization and trade allow countries to consume?

Question 12

In the given example, which country has absolute advantage in both grain and meat production?

Question 13

Based on the opportunity cost analysis, which country should specialize in meat production?

Question 14

If 1 ton of meat is traded for 1.5 tons of grain, what does Big Country gain and lose?

Question 15

Which formula is used to calculate opportunity cost for input problems?