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AP Microeconomics 1.4: Comparative Advantage and Trade

Compare producers using output and opportunity cost data, then explain how specialization and appropriate terms of trade can expand consumption.

Syllabus
Effective Fall 2025
Course
AP Microeconomics

Covered syllabus points

MKT-2.A—a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and…MKT-2.B—a. Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate…

1.4 Comparative Advantage and Trade question 1

[Maximum number: 3]

The graph shows the production possibilities curves for Northland and Southland.

Figure for Question 1.4 Comparative Advantage and Trade question 1 — AP Microeconomics

Question (a)

(a)

Which country has a comparative advantage in producing wheat? Explain using numbers.

[ 1 ]

Question (b)

(b)

Identify a specific number of yards of cloth that could be traded for 10 bushels of wheat and would be mutually beneficial to Northland and Southland.

[ 1 ]

Question (c)

(c)

Southland's maximum possible output of wheat falls from 100 bushels to 75 bushels. Assuming no other changes, will Southland have a comparative advantage in producing cloth? Explain using numbers.

[ 1 ]
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