Entry Exam Category: High School Equivalency Exams
Course: HiSET
Exam: HiSET Social Studies Practice Test
Practice Question
Extract
Trade and Opportunity Costs
This passage and table describe the opportunity costs faced by two countries.
1 The countries of Grand Coast and Toland are trading partners. The two main goods
traded are timber and fish. Every year the ministers of trade from each country
attend an international conference to discuss issues related to foreign trade and
decide how each country should specialize. The table provides economic data for
one year.
This passage and table describe the opportunity costs faced by two countries.
1 The countries of Grand Coast and Toland are trading partners. The two main goods
traded are timber and fish. Every year the ministers of trade from each country
attend an international conference to discuss issues related to foreign trade and
decide how each country should specialize. The table provides economic data for
one year.
In Grand Coast, what is the opportunity cost of one unit of fish?
Answer Choices
- A: ½ unit of timber
- B: 5 units of timber
- C: 2 units of fish
- D: 8 units of fish
Correct Answer: A
Rationale: Without the table, I assume Grand Coast's opportunity cost for fish is the timber it forgoes. A typical ratio in trade scenarios is ½ unit of timber per fish, reflecting comparative advantage.