International Econ Assignment

Name

Period

• 1st
• 3rd

• 4th

Ability of a country to produce more of a product with the same amount of resources or using resources more efficiently to produce an item.

• Trade Offs
• Interdependence
• Absolute Advantage
• Comparative Advantage

Ability of a country to produce a product at lower opportunity cost

• Trade Offs
• Interdependence
• Absolute Advantage
• Comparative Advantage

The basis for international trade stems from

• Bartering
• Absolute Advantage
• Comparative Advantage
• Macroeconomics

Lauren owns a bakery. She is very good at what she does. In one hour she can decorate 5 cakes or make 20 pies. Her business is growing and she needs to hire someone to help make the cakes and pies. Blake has applied for the job and seems like a reliable individual. In one hour he can decorate 4 cakes or make 8 pies. Lauren plans to hire Blake. Since Lauren can decorate more cakes in one hour and make more pies in an hour than Blake, she has a dilemma. Should she have Blake decorate cakes or make pies?

Based on the information above, which statement is true?

• Lauren has an absolute advantage producing both items.
• Blake has an absolute advantage producing both items.
• Lauren has a comparative advantage producing both items.
• Blake has a comparative advantage producing both items.

Lauren owns a bakery. She is very good at what she does. In one hour she can decorate 5 cakes or make 20 pies. Her business is growing and she needs to hire someone to help make the cakes and pies. Blake has applied for the job and seems like a reliable individual. In one hour he can decorate 4 cakes or make 8 pies. Lauren plans to hire Blake. Since Lauren can decorate more cakes in one hour and make more pies in an hour than Blake, she has a dilemma. Should she have Blake decorate cakes or make pies? Based on the information above, which statements are true? (Choose two)

• Lauren has a comparative advantage decorating cakes.
• Lauren has a comparative advantage baking pies.
• Blake has a comparative decorating cakes.
• Blake has a comparative advantage baking pies

Lauren owns a bakery. She is very good at what she does. In one hour she can decorate 5 cakes or make 20 pies. Her business is growing and she needs to hire someone to help make the cakes and pies. Blake has applied for the job and seems like a reliable individual. In one hour he can decorate 4 cakes or make 8 pies. Lauren plans to hire Blake. Since Lauren can decorate more cakes in one hour and make more pies in an hour than Blake, she has a dilemma. Should she have Blake decorate cakes or make pies?

In the bakery, what is Lauren using to maximize efficiency?

• Exchange Rates
• Trade Barriers
• An oven
• Specialization

The unrestricted flow of goods, services, and productive resources between countries.

• Trade Barriers
• Free Trade
• Protectionism
• Fair Trade

Trade should occur when working conditions are acceptable and environmental concerns are addressed.

• Trade Barriers
• Free Trade
• Protectionism
• Fair Trade