4. USAEO International and Development

Comparative Advantage In Trade — Quiz

Test your understanding of comparative advantage in trade with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes the concept of comparative advantage in international trade?

Question 2

If Country X can produce 8 units of wheat or 4 units of cloth, and Country Y can produce 6 units of wheat or 3 units of cloth, which country has the comparative advantage in producing cloth?

Question 3

Which of the following is a necessary condition for two countries to benefit from trade based on comparative advantage?

Question 4

Suppose Country A can produce 100 units of steel or 50 units of textiles, and Country B can produce 80 units of steel or 40 units of textiles. What is Country A’s opportunity cost of producing 1 unit of steel?

Question 5

If Country A specializes in the good for which it has a comparative advantage, what should Country A do to maximize the benefits of trade?