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If Japan has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.

Comparative advantage, not absolute advantage, determines the decision to specialize in production.

Absolute advantage is a comparison based on productivity.

Self-sufficiency is the best way to increase one's material welfare.

Comparative advantage is a comparison based on opportunity cost.

If a producer is self-sufficient, the production possibilities frontier is also the consumption possibilities frontier.

If a country's workers can produce 5 hamburgers per hour or 10 bags of French fries per hour, absent trade, the price of 1 bag of fries is 2 hamburgers.

If producers have different opportunity costs of production, trade will allow them to consume outside their production possibilities frontiers.

If trade benefits one country, its trading partner must be worse off due to trade.

Talented people that are the best at everything have a comparative advantage in the production of everything.

The gains from trade can be measured by the increase in total production that comes from specialization.

When a country removes a specific import restriction, it always benefits every worker in that country.

If Germany's productivity doubles for everything it produces, this will not alter its prior pattern of specialization because it has not altered its comparative advantage.

If an advanced country has an absolute advantage in the production of everything, it will benefit if it eliminates trade with less developed countries and becomes completely self-sufficient.

If gains from trade are based solely on comparative advantage, and if all countries have the same opportunity costs of production, then there are no gains from trade.

If a nation has an absolute advantage in the production of a good it:

If a nation has a comparative advantage in the production of a good it,

Which of the following statements about trade is true?

According to the principle of comparative advantage, countries

Which of the following statements is true?

Suppose a country's workers can produce 4 watches per hour or 12 rings per hour. If there is no trade, the domestic price of 1 ring is

Suppose a country's workers can produce 4 watches per hour or 12 rings per hour. If there is no trade, the opportunity cost of 1 watch is

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

Which of the following statements about absolute advantage is true?

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

The opportunity cost of 1 unit of electronics in Australia is

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

The opportunity cost of 1 unit of electronics in Korea is

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

The opportunity cost of 1 unit of food in Australia is

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

            The opportunity cost of 1 unit of food in Korea is

Refer to Figure 3-1.

            Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

Which of the following statements about comparative advantage is true?

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

            Korea should

Refer to Figure 3-1.

      Figure 3-1
            The following table shows the units of output a worker can produce per month in Australia and Korea.
                              Food            Electronics
                  Australia          20                   5
                  Korea                  8                   2

            Prices of electronics can be stated in terms of units of food. What is the range of prices of electronics for which both countries could gain from trade? The price must be greater than:

Suppose the world consists of two countries: the Germany and Spain. Further, suppose there are only two goods--food and clothing. Which of the following statements is true?

Use the production possibilities frontiers in Exhibit 4 to answer the question.



Assume each country has the same number of workers, say 20 million, and that each axis is measured in metric tons per month. Argentina has a comparative advantage in the production of

Use the production possibilities frontiers in Exhibit 4 to answer the question.


           
Assume each country has the same number of workers, say 20 million, and that each axis is measured in metric tons per month. Peru will export

Use the production possibilities frontiers in Exhibit 4 to answer the question.



Assume each country has the same number of workers, say 20 million, and that each axis is measured in metric tons per month. The opportunity cost of producing a metric ton of beef in Peru is

Felipe is a tax accountant. He receives €100 per hour doing tax returns. He can type 10,000 characters per hour into spreadsheets. He can hire an assistant who types 2,500 characters per hour into spreadsheets. Which of the following statements is true?