Comparative Advantage Quiz

Comparative Advantage: ten questions on opportunity cost and trade. Includes calculations; answers explained.

Free, with no sign-up.

For High school students and adults reviewing the topic.

About 11 minutes. 10 questions.

How does it work?

Choose one answer or enter a number in the stated unit, then check it.
Read the explanation before continuing.
Round only the final answer to the precision requested.

What will you get?

See your score and review the reasoning behind each answer.

Question 1A workshop can make 18 bowls or 6 lamps per worker-day. Find the opportunity cost of one lamp in bowls per lamp, rounded to two decimals.

Enter a number in bowls/lamp.

Answers within 0.005 bowls/lamp of the expected value are accepted.

Question 2Another producer can make 20 bowls or 5 lamps per worker-day. Find the cost of one bowl in lamps per bowl, rounded to two decimals.

Enter a number in lamps/bowl.

Answers within 0.005 lamps/bowl of the expected value are accepted.

Question 3Producer A can make 24 bowls or 8 lamps per day; B can make 14 bowls or 2 lamps. Find the lower boundary of mutually beneficial trade in bowls per lamp, rounded to two decimals.

Enter a number in bowls/lamp.

Answers within 0.005 bowls/lamp of the expected value are accepted.

Question 4Producer A can make 28 bowls or 7 lamps per day; B can make 18 bowls or 2 lamps. Find the upper boundary of mutually beneficial trade in bowls per lamp, rounded to two decimals.

Enter a number in bowls/lamp.

Answers within 0.005 bowls/lamp of the expected value are accepted.

Question 5A producer gives up 5 bowls to make a lamp and trades that lamp for 6.5 bowls. Find the gain relative to its production cost in bowls, rounded to two decimals.

Enter a number in bowls.

Answers within 0.005 bowls of the expected value are accepted.

Question 6One worker is faster at both tasks. What comparison identifies the better division of work?

The total output produced across unlike tasksThe worker who finishes each task in less timeThe number of tasks assigned to each workerThe alternative output sacrificed for each task

Question 7Two workshops have identical opportunity costs before transport costs. What does the basic model imply about exchange?

Each workshop has a strict advantage in both goodsThe larger workshop gains while the smaller must specializeA trade price between their costs has positive widthThere is no strict gain from different production costs

Question 8Specialization expands total income, but a group of import-competing workers loses jobs. How do these observations fit?

Aggregate gains establish a wage increase for those workersWorker losses prove that total income did not increaseAggregate gains coexist with adjustment lossesTrade benefits are measured by the count of occupations

Question 9A supplier shifts further toward a task, but its opportunity cost rises as less-suited resources move. What is a reasonable implication?

Partial specialization warrants comparison at the marginComplete specialization follows from the supplier’s first unitRising opportunity cost strengthens the case for producing the next unitThe original output ranking replaces the need to compare costs

Question 10Shipping and inspection consume resources in a proposed exchange. What happens to the potential gains?

Exchange costs widen the gap between production possibilitiesExchange costs use some or all of the available surplusExchange costs change absolute advantage into comparative advantageExchange costs belong outside the decision to trade

Answer every question to see and share your score.

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