Reffonomics Video -- PPF, Part III, (Absolute and Comparative Advantage)

After watching the video, scroll down to take the three multiple choice questions.






1. Which country has the absolute advantage in the production of cars?

A) Country A only
B) Country B only
C) Neither has an absolute advantage.
D) Both have an absolute advantage.
E) Cannot be determined.





2. Which country has the comparative advantage in the production of trucks?

A) Country A only
B) Country B only
C) Neither has an absolute advantage.
D) Both have an absolute advantage.
E) Cannot be determined.




3. Which country has the comparative advantage in the production of cars?

A) Country A only
B) Country B only
C) Neither has an absolute advantage.
D) Both have an absolute advantage.
E) Cannot be determined.