Absolute Advantage

When one country is good at producing in a particular commodity, they have a(n) _____ .

• Comparative advantage

• Complete specialization

• Absolute advantage

• None of the above

The ability to produce something using fewer resources than other producers is called having the...

• Absolute Advantage

• Comparative Advantage

• Better Advantage

• Competitive Advantage

Identify the basis of trade of the following table:

• Malaysia has comparative advantage in Cloth

• Malaysia has absolute advantage in Cloth production

• Japan has comparative advantage in Car

• Japan has absolute advantage in Cloth

The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. Who has the absolute advantage in tools?

• Peru

• U.S.

• neither

• not enough info

Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 24 units of food per year or 12 units of clothing. Which of the following is true?

• Alland has an absolute advantage in producing food but will not trade with Georgeland.

• Alland has a comparative advantage, but not an absolute advantage, in producing food.

• Georgeland has both a comparative and absolute advantage in producing clothing.

• Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing.

Which of the following statements is true?

• William has an absolute advantage in making both cakes and pies.

• William has an absolute advantage in making both goods.

• For every 1 cake William makes, he gives up the chance to make 3 pies.

• David has an absolute advantage in making pies.

The cost of producing bicycles and motorbikes in Germany and Italy is shown in the table. Which of the following statements is correct

• Germany has an absolute and comparative in producing bicycles

• Germany has an absolute advantage in the production of bicycles but Italy has a comparative advantage in bicycles

• Italy has an absolute advantage in the production of bicycles but Germany holds the comparative advantage

• Italy has an absolute and comparative advantage in producing bicycles

Which of the following best describes 'Absolute Advantage'?

• The ability to produce more of a good or service than competitors using the same amount of resources

• The ability to produce a good or service at a lower opportunity cost than competitors

• The ability to produce a good or service with the highest quality

• The ability to produce a good or service faster than competitors

Country A can produce 100 units of wheat using 50 workers, while Country B can produce 80 units of wheat using 50 workers. Which country has the absolute advantage in wheat production?

• Country A

• Country B

• Both have the same advantage

• Neither has an advantage

If a country can produce 30 units of electronics using 10 hours of labor, while another country can produce 25 units using the same amount of labor, which country has the absolute advantage?

• The first country

• The second country

• Both countries

• Neither country