Answer in 1 long paragraphs nga may two sentences plss and then question first then answers Activity 1-Concept Check Answer briefly: 1. What is international trade theory? 2. What is mercantilism? 3. What is absolute advantage? 4. What is comparative advantage? 5. What is opportunity cost? 6. Why is specialization important? Activity 2- Absolute Advantage Study the table: Country Wheat Corn Country A 100 50 Country B 80 70 Questions 1. Which country has an absolute advantage in wheat? 2. Which country has an absolute advantage in corn? 3. Explain your answer.

Question 1: 1. What is international trade theory?

International trade theory is a branch of economics that analyzes the patterns, causes, and consequences of trade between countries. It seeks to explain why nations trade, what goods they trade, and how trade impacts their economies and welfare.

---

Question 2: 2. What is mercantilism?

Mercantilism is an economic theory and practice, dominant from the 16th to the 18th century, that advocated for government regulation of a nation's economy to augment state power at the expense of rival national powers. Its primary goal was to maximize exports and minimize imports to accumulate monetary reserves, particularly gold and silver.

---

Question 3: 3. What is absolute advantage?

Absolute advantage refers to a country's ability to produce a good or service more efficiently than another country, meaning it can produce more output with the same amount of inputs or the same output with fewer inputs. This concept suggests that countries should specialize in producing goods where they have an absolute advantage and trade them with others.

---

Question 4: 4. What is comparative advantage?

Comparative advantage describes a country's ability to produce a good or service at a lower opportunity cost than another country. Even if a country has an absolute advantage in all goods, it can still benefit from trade by specializing in the good where its efficiency advantage is greatest, or its disadvantage is least.

---

Question 5: 5. What is opportunity cost?

Opportunity cost is the value of the next best alternative that must be foregone when making a choice or decision. In the context of production, it represents the amount of one good that must be given up to produce an additional unit of another good.

---

Question 6: 6. Why is specialization important?

Specialization is important because it allows countries or individuals to focus their resources on producing goods and services in which they have a comparative advantage, leading to increased efficiency and higher overall output. This increased production can then be traded, resulting in greater consumption possibilities and economic welfare for all involved parties.

---

Question 7: 1. Which country has an absolute advantage in wheat?

Country A has an absolute advantage in wheat.

---

Question 8: 2. Which country has an absolute advantage in corn?

Country B has an absolute advantage in corn.

---

Question 9: 3. Explain your answer.

Country A has an absolute advantage in wheat because it can produce 100 units of wheat, which is more than Country B's 80 units. Conversely, Country B has an absolute advantage in corn because it can produce 70 units of corn, which is more than Country A's 50 units.