1.7 Comparative and Absolute Advantage

Question 1

Which of the following statements is a valid economic conclusion based on this information?

Revolt · Accepted Answer

It would be best for Sam to work only on making sales calls.

Question 2

absolute✔ comparative

Revolt · Accepted Answer

comparative

Question 3

✔ absolute comparative

Revolt · Accepted Answer

absolute

Question 4

Look at the examples, and then determine which type of advantage each one describes.

Revolt · Accepted Answer

absolute; A producer can provide cable service more cheaply than another producer.: absolute; A producer can produce salads while giving up fewer opportunities to make sandwiches than another producer.: comparative; A producer can create more car parts than another producer, while using the same number of resources.: absolute

Question 5

absolute✔ comparative

Revolt · Accepted Answer

✔ comparative

Question 6

✔ absolute comparative

Revolt · Accepted Answer

✔ absolute

Question 7

Sam✔ KC

Revolt · Accepted Answer

✔ KC; In this example, has an absolute advantage in processing tax returns.: KC; has an absolute advantage in completing sales calls.: Sam

Question 8

✔ Sam KC

Revolt · Accepted Answer

✔ Sam

Question 9

Use the production possibility schedule to complete each sentence. Producers have a comparative advantage when they have a opportunity cost. has a comparative advantage in processing tax returns. has a comparative advantage in making sales calls.

Revolt · Accepted Answer

lower; Selection 1: lower; Selection 2: KC; Selection 3: Sam

Question 10

Sam✔ KC

1.7 Comparative and Absolute Advantage Answers

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