IB Multiple Choice - Comparative Advantage & Trade

Test yourself on IB Multiple Choice - Comparative Advantage & Trade

• What does this definition describe?
  
  "_______ occurs when an individual, firm or economy can produce a good or service at a lower opportunity cost than another producer."

• What does this definition describe?
  
  "_______ occurs when an individual, firm or economy can produce more of a good or service than any other firm/economy with the same amount of resources."

• Which of these statements is true?

• Absolute advantage can be the result of a country’s natural endowment. Which of these is NOT a good example of a country's national endowment?

• Which of these statements was argued by economist David Ricardo?