International Trade

Question 1

A country with an absolute advantage can produce a good or service

Revolt · Accepted Answer

more efficiently than another country.

Question 2

Which is an example of a country that is overly dependent on another country for critical goods and services?

Revolt · Accepted Answer

a country that imports all its oil

Question 3

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?

Revolt · Accepted Answer

It produces food more efficiently than Japan.

Question 4

The Middle East is best associated with which internationally traded product?

Revolt · Accepted Answer

oil

Question 5

It takes brothers John and Dan the same amount of time to clean the room they share, but John can mow the lawn faster than Dan. Which action would allow them to take advantage of their respective comparative advantages?

Revolt · Accepted Answer

John mowing the lawn and Dan cleaning their room

Question 6

What role does competition play in international trade?

Revolt · Accepted Answer

It drives down prices for consumers.

Question 7

Which is the best example of a country that is dependent on other countries?

Revolt · Accepted Answer

a country that has little fertile soil

Question 8

Why do most countries both export and import goods?

Revolt · Accepted Answer

to get a good mix of goods and services

Question 9

Which region specializes in diamonds?

Revolt · Accepted Answer

Sub-Saharan Africa

Question 10

What is the benefit in reaching the absolute advantage in the production of one good?

Revolt · Accepted Answer

to produce more units of a good while using fewer resources

International Trade Answers

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