International Trade

Question 1

What kind of advantage does a country have if it can make a product more efficiently?

Revolt · Accepted Answer

an absolute advantage.

Question 2

Which situation is the best example of opportunity cost?

Revolt · Accepted Answer

A country chooses to produce bananas instead of wheat.

Question 3

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 4

The table compares two countries and two products.

Revolt · Accepted Answer

focus on the petroleum industry only

Question 5

How does specialization enable countries to trade with one another?

Revolt · Accepted Answer

A country can make and sell goods affordably and buy goods that it is inefficient at making.

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

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

Revolt · Accepted Answer

more efficiently than another country.

Question 9

When a country chooses to limit the kinds of goods or services it produces, it is practicing

Revolt · Accepted Answer

specialization.

Question 10

Which statement best describes how globalization is affecting the world?

Revolt · Accepted Answer

The world is becoming more globalized and connected.

International Trade Answers