ECON 2110 - Clemson: Exam 1 Practice
Guide 2026
1. Absolute Advantage The ability to produce a good using fewer inputs than another
producer.
2. Comparative Advantage The ability to produce a good at a lower opportunity cost than
another producer.
3. True or False: It is impossi- False.
ble for a country to have an
absolute advantage in both
goods.
4. True or False: It is impossible True.
for a country to have a com-
parative advantage in both
goods.
5. If you have the opportunity The inverse of the first good.
cost of one good, how can you
find the opportunity cost of
the other?
6. Trade Off The idea of having to sacrificing something for something else
because of limits.
7. In order to have a higher Comparative Advantage.
overall production, a country
should specialize in the good
that it has a(n) (absolute/com-
parative) advantage in.
8. What makes everyone better Trade
off?
1/4
Guide 2026
1. Absolute Advantage The ability to produce a good using fewer inputs than another
producer.
2. Comparative Advantage The ability to produce a good at a lower opportunity cost than
another producer.
3. True or False: It is impossi- False.
ble for a country to have an
absolute advantage in both
goods.
4. True or False: It is impossible True.
for a country to have a com-
parative advantage in both
goods.
5. If you have the opportunity The inverse of the first good.
cost of one good, how can you
find the opportunity cost of
the other?
6. Trade Off The idea of having to sacrificing something for something else
because of limits.
7. In order to have a higher Comparative Advantage.
overall production, a country
should specialize in the good
that it has a(n) (absolute/com-
parative) advantage in.
8. What makes everyone better Trade
off?
1/4
