Question :
19.2 Comparative Advantage in International Trade
1) Absolute advantage
A) the : 1244953
19.2 Comparative Advantage in International Trade
1) Absolute advantage is
A) the ability to produce more of a good or service than competitors when using the same amount of resources.
B) the ability to produce higher quality goods compared to one’s competitors.
C) the ability to produce a good or service at a higher opportunity cost than one’s competitors.
D) the ability to produce more of a good or service than competitors that have more resources.
2) ________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.
A) Absolute advantage
B) Specialization
C) Autarky
D) Comparative advantage
Table 19-1
Bathing
Grooming
Linda
60
20
Sandy
50
25
Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 19-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
3) Refer to Table 19-1. Select the statement that accurately interprets the data in the table.
A) Linda has an absolute advantage in dog bathing and Sandy has an absolute advantage in dog grooming.
B) Sandy has an absolute advantage in dog bathing and Linda has an absolute advantage in dog grooming.
C) Sandy has an absolute advantage in dog bathing and dog grooming.
D) Linda has an absolute advantage in dog bathing and dog grooming.
4) Refer to Table 19-1. Select the statement that accurately interprets the data in the table.
A) Sandy has a greater opportunity cost than Linda for dog grooming.
B) Sandy’s opportunity cost for dog grooming is less than Linda’s.
C) Linda has a greater opportunity cost than Sandy for dog bathing.
D) Sandy’s opportunity cost for dog grooming and dog bathing are both greater than Linda’s.
5) Refer to Table 19-1. Select the statement that accurately interprets the data in the table.
A) Sandy has a comparative advantage in dog grooming.
B) Linda has a comparative advantage in dog grooming.
C) Linda has a comparative advantage in dog grooming and dog bathing.
D) Sandy has a comparative advantage in dog bathing.
6) Refer to Table 19-1. Select the statement that accurately interprets the data in the table.
A) Linda has a comparative advantage in dog bathing.
B) Sandy has an absolute advantage in dog bathing.
C) Sandy has a comparative advantage in dog bathing.
D) Linda has a comparative advantage in dog grooming and dog bathing.
Table 19-2
Pies
Cakes
Sarita
15
25
Gabriel
12
16
Sarita and Gabriel own S&G Bakery. Table 19-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
7) Refer to Table 19-2. Select the statement that accurately interprets the data in the table.
A) Sarita has an absolute advantage in baking cakes and Gabriel has an absolute advantage in baking pies.
B) Sarita has an absolute advantage in baking pies and Gabriel has an absolute advantage in baking cakes.
C) Sarita has an absolute advantage in baking pies and cakes.
D) Gabriel has an absolute advantage in baking pies and cakes.
8) Refer to Table 19-2. Select the statement that accurately interprets the data in the table.
A) Sarita has a greater opportunity cost than Gabriel for baking cakes.
B) Sarita’s opportunity cost for baking cakes is less than Gabriel’s.
C) Gabriel has a greater opportunity cost than Sarita for baking pies.
D) Gabriel’s opportunity cost for baking cakes and baking pies are both greater than Sarita’s.
9) Refer to Table 19-2. Select the statement that accurately interprets the data in the table.
A) Sarita has a comparative advantage in baking pies.
B) Gabriel has a comparative advantage in baking cakes.
C) Sarita has a comparative advantage in baking pies and baking cakes.
D) Sarita has a comparative advantage in baking cakes.
10) Refer to Table 19-2. Select the statement that accurately interprets the data in the table.
A) Sarita has a comparative advantage in baking pies.
B) Gabriel has an absolute advantage in baking cakes.
C) Gabriel has a comparative advantage in baking pies.
D) Gabriel has a comparative advantage in baking pies and baking cakes.
Table 19-3
Candles
Soap
Bryce
150
450
Tina
200
450
Bryce and Tina are artisans who produce homemade candles and soap. Table 19-3 lists the number of candles and bars of soap Bryce and Tina can each produce in one month.