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Comparative Advantage AP Human Geography Quiz: Test Your Knowledge

Hey there, future geographers! 🌍 Get ready to test your knowledge of Comparative Advantage with this quick study guide and quiz. Let's see how well you understand how countries and businesses can benefit from specializing in what they do best! Good luck!πŸ€
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kelsey.miller Dec 30, 2025

πŸ“š Quick Study Guide

  • 🌍 Comparative Advantage: The ability of a country or firm to produce a particular good or service at a lower opportunity cost than another country or firm.
  • βš–οΈ Opportunity Cost: The value of the next best alternative forgone when making a decision.
  • 🏭 Specialization: Focusing on producing a limited range of goods or services to increase efficiency.
  • 🀝 Trade: The exchange of goods or services between countries or firms, allowing them to benefit from each other's comparative advantages.
  • πŸ’‘ Absolute Advantage: The ability to produce more of a good or service than another country or firm using the same amount of resources. (Comparative advantage is more important for trade!)
  • πŸ“ˆ Benefits of Trade: Increased production, lower prices for consumers, and access to a wider variety of goods and services.

πŸ“ Practice Quiz

  1. Which of the following best describes comparative advantage?
    1. A) The ability to produce a good or service using fewer resources.
    2. B) The ability to produce a good or service at a lower opportunity cost.
    3. C) The ability to produce more of a good or service than any other country.
    4. D) The desire to produce a wide variety of goods and services.
  2. Opportunity cost is best described as:
    1. A) The monetary cost of production.
    2. B) The value of the next best alternative forgone.
    3. C) The cost of raw materials.
    4. D) The cost of labor.
  3. Specialization, in the context of international trade, refers to:
    1. A) Producing a wide variety of goods and services.
    2. B) Focusing on producing goods and services with the lowest opportunity cost.
    3. C) Ignoring the principle of comparative advantage.
    4. D) Limiting trade with other countries.
  4. Which of the following is a benefit of international trade based on comparative advantage?
    1. A) Higher prices for consumers.
    2. B) Reduced production of goods and services.
    3. C) Increased efficiency and access to a wider variety of goods.
    4. D) Decreased competition among firms.
  5. Country A can produce both wheat and cars more efficiently than Country B. However, Country A has a lower opportunity cost in producing cars. According to the principle of comparative advantage:
    1. A) Country A should specialize in wheat and trade with Country B for cars.
    2. B) Country A should specialize in cars and trade with Country B for wheat.
    3. C) Country A should produce both wheat and cars and not trade with Country B.
    4. D) Country B should produce both wheat and cars and not trade with Country A.
  6. Absolute advantage differs from comparative advantage in that absolute advantage refers to:
    1. A) Producing at a lower opportunity cost, while comparative advantage refers to producing more efficiently.
    2. B) Producing more efficiently, while comparative advantage refers to producing at a lower opportunity cost.
    3. C) Limiting production, while comparative advantage focuses on increasing production.
    4. D) Ignoring trade, while comparative advantage emphasizes trade.
  7. Which of the following is the MOST direct result of countries specializing according to their comparative advantage?
    1. A) A decrease in global production efficiency.
    2. B) Increased global interdependence.
    3. C) Higher prices for goods and services worldwide.
    4. D) A reduction in the variety of goods available to consumers.
Click to see Answers
  1. B
  2. B
  3. B
  4. C
  5. B
  6. B
  7. B

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