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Study Game - Topic 1.3

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Study Game - Topic 1.3

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Comparative Advantage and Gains from Trade

Created by

Zachary Foust
Zachary Foust
United States

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Study Game - Topic 1.3
 

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Comparative Advantage and Gains from Trade

by Zachary Foust
1

The table shows that Foustland can produce 10 widgets or 100 gadgets using all its available resources in a year. Mooreland can produce 10 widgets or 50 gadgets using all its available resources in a year. Based on the information provided above, which of the following must be true?

2

If two nations specialize according to their individual comparative advantages and engage in trade, then which of the following must be true?

3

The table shows that Foustland can produce 10 widgets or 100 gadgets using all its available resources in a year. Mooreland can produce 10 widgets or 50 gadgets using all its available resources in a year. Based on the information provided above, which of the following are mutually beneficial terms of trade at which both Foustland and Mooreland will be willing to specialize and exchange?

4

A country has the absolute advantage in the production of a good if

5

A country has the comparative advantage in the production of a good if

6

Analyze the graph. Which of the following statements is true?

7

Analyze the graph. Which of the following statements is true?

8

The terms of trade definitely benefit one party but not the other if

9

Consumption outside of the production possibilities curve is

10

Which of the following best illustrates the concept of specialization?

 
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