4. The Global Economy

Comparative Advantage — Quiz

Test your understanding of comparative advantage with 5 practice questions.

Practice Questions

Question 1

What does comparative advantage mean in economics?

Question 2

A country can produce $10$ tons of wheat or $5$ cars with the same resources. What is the opportunity cost of producing $1$ car?

Question 3

Two countries can each produce $1$ unit of clothing or $1$ unit of food in one hour. Country A gives up $2$ units of food to make $1$ unit of clothing, while Country B gives up $4$ units of food to make $1$ unit of clothing. Which country has comparative advantage in clothing?

Question 4

What is one main reason countries specialize and trade according to comparative advantage?

Question 5

If a country has comparative advantage in producing rice, what does this imply?