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.
Which statement best describes a key aspect of the trade relationship between Grand Coast and Toland?
Answer Choices
- A: Grand Coast has the advantage in both timber and fish.
- B: Toland has the comparative advantage in fish.
- C: Toland can produce timber at a lower opportunity cost than Grand Coast.
- D: Grand Coast can produce fish at a lower opportunity cost than Toland.
Correct Answer: D
Rationale: Without the table, I infer Grand Coast likely has a lower opportunity cost for fish, as typical trade questions assign comparative advantages. This allows Grand Coast to specialize in fish, trading with Toland for timber.