Comparative Advantage and Gains from Trade Practice Test

Based on the production data shown, which statement about gains from trade is correct?

Assume each country can devote all of its resources to producing only one good per day.

Country R can produce either 14 barrels of oil per day or 7 crates of oranges per day.

Country S can produce either 10 barrels of oil per day or 10 crates of oranges per day.

Based on the production data shown, which country has the comparative advantage in rice?

Assume each country can devote all of its resources to producing only one good per month.

Country U can produce either 20 tons of rice per month or 10 tons of timber per month.

Country V can produce either 12 tons of rice per month or 6 tons of timber per month.