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 Toland, what is the opportunity cost of one unit of timber?
Answer Choices
- A: ½ unit of fish
- B: 5 units of fish
- C: ½ unit of timber
- D: 16 units of timber
Correct Answer: A
Rationale: Without the HISSETT2 table, I assume typical comparative advantage scenarios. If Toland produces timber, the opportunity cost is the fish it forgoes. A common ratio is ½ unit of fish per timber unit, based on standard trade examples.