Question 1
What does comparative advantage mean in economics?
Question 2
If one country can produce both goods more efficiently than another country, what should it still do according to comparative advantage?
Question 3
Which statement best describes opportunity cost?
Question 4
A country can produce 10 units of wheat or 5 units of cloth with the same resources. What is the opportunity cost of producing 1 unit of cloth?
Question 5
Why can trade based on comparative advantage increase total welfare?
