Question 1

A country has a comparative advantage when

Group of answer choices

they can produce less of a good or service than another country

they can produce a good or service at a higher opportunity cost

they can produce a good or service using fewer resources

they can produce a good or service at a lower opportunity cost

Question 2

Colombia can produce 3 tons of cocoa beans or 6 tons of coffee per day. Ghana can produce 10 tons of cocoa beans or 8 tons of coffee per day. Which of the following statements is true?

Group of answer choices

Ghana has the absolute advantage in producing both cocoa and coffee

Ghana has a comparative advantage in producing coffee

Colombia has an absolute advantage in producing coffee

Colombia has a comparative advantage in producing cocoa

Question 3

When Canada produces maple syrup and sells it to other countries, Canada is

Group of answer choices

an important country

an expiring country

an importing country

an exporting country

Question 4

When a country produces a good or service using fewer resources, this country is said to have a(n)

Group of answer choices

abnormal advantage

absolute advantage

comparative advantage

complete advantage

Question 5

The domestic price of coffee is $3.00 per pound. Colombia opens for trade and finds that the world price of coffee is $7.00 per pound. Which statement is true?

Group of answer choices

Colombia will not benefit from trade

Colombia will not want to trade

Colombia will import coffee

Colombia will export coffee

Question 6

Samoa can produce 30 tons oftuna or 60 tons ofcoconut oil. Indonesia can produce 10 tons of tuna or 40 tons of coconut oil. Which of the following statements is true?

Group of answer choices

Indonesia has the absolute advantage in producing coconut oil

Indonesia has the comparative advantage in producing tuna

Samoa has the comparative advantage in producing coconut oil

Samoa has the comparative advantage in producing tuna

Question 7

One of the benefits of trade is

Group of answer choices

more competition amongst firms

less competition amongst firms

pollution

higher prices of goods

Question 8

Nigeria opens for trade and becomes an importing country. Which of the following statements is true?

Group of answer choices

domestic producers benefit but domestic consumers lose

domestic producers benefit but foreign consumers lose

domestic consumers benefit but domestic producers lose

foreign consumers benefit but domestic producers lose

Question 9

Which of the following statements regarding trade is true?

Group of answer choices

Total surplus decreases when two countries trade

Total surplus increases when two countries trade

Two countries are worse off economically when they trade

Only producers benefit from trade

Question 10

Which of the following is NOT a protectionist policy?

Group of answer choices

non tariff barriers

economies of scale

import quota

tariffs