Enter Title

Absolute Advantage

100

If Japan produces 100 apples and 200 oranges. And the US produces 400 apples and 200 oranges. This country has the absolute advantage for apples.

What is the US?

200

Vietnam can produce 1 unit of beef in 8 hours. England can produce 1 unit of beef in 10 hours. What country has the absolute advantage?

Vietnam

300

China can produce 1 t-shirt in 1 hour and 1 flag in 2 hours. South Korea can produce 1 t-shirt in 3 hours and 1 flags in 6 hours. What country has the absolute advantage in t-shirts? What country has absolute advantage in flags? 

Shirt- China

Flag- China

Comparative Advantage

100

Austria can produce 3 units of steel in 1 hour and 8 brooms in 1 hour. Belgium can produce 8 units of steel in 1 hour and 1 broom in 1 hour. Who has the comparative advantage in brooms?

Belgium

200

Australia can make 300 sleds and 2 clarinets in 1 hour. Brazil can make 200 sleds and 1 clarinet. What country has the comparative advantage?

Brazil

300

The definition of comparative advantage

the ability of a group to produce a good more efficiently than any other country. 

Random

100

True or false: opportunity cost helps country figure out what to trade. 

True

200

True or false: specialization gives countries reasons to trade

True

300

True or false: trade is a factor that leads to economic growth

False