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Comparative Advantage, Specialization and Exchange: Help and Review Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. According to the Law of Comparative Advantage, where should a good be produced?

Question 2 2. The United States can produce 20 strawberries or 80 apples, while Canada can produce 15 strawberries or 5 apples. Which of the following describes what will happen if these two countries trade with each other?

Question 3 3. What happens if a nation doesn't have an absolute advantage in producing anything?

Question 4 4. Which of the following statements is true?

Question 5 5. If Sally can produce 1 term paper or 4 cookies in one hour, and Adam can produce 2 term papers or 1 cookie in the same amount of time, which of these statements is true?

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Question 6 6. When countries specialize in the goods in which they have a comparative advantage, which of the following is true?

Question 7 7. Which of the following is NOT a benefit of specialization and exchange?

Question 8 8. A person or nation that has a comparative advantage in the production of a good, should _____.

Question 9 9. According to the two production possibility curves shown, Country A should specialize in the production of which of the following?

Question 10 10. Country A's opportunity cost of producing 1 ton of corn is 5 tons of wheat, while Country B's opportunity cost of producing 1 ton of corn is 1/3 of a ton of wheat. Which of the following statements is true?

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Question 11 11.

Country A can either produce 10 cars or 10 computers, while country B can produce either 4 cars or 8 computers.

Based on this information, which of the following statements is TRUE?

Question 12 12. The table here shows the labor hours necessary to produce one unit of two goods, salmon and coconut creme pies, in two countries. If labor is the only input used, which of the following statements is true?

Question 13 13. Which of the following are problems that all economies face?

Question 14 14. Assume that there are only two countries, Country A and Country B, producing only two goods, corn cereal and designer jeans. The table here shows the production possibilities for these two countries. Which of the following statements is correct?

Question 15 15. What does it mean for a nation to have an absolute advantage in the production of a good?

Comparative Advantage, Specialization and Exchange: Help and Review Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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