International Trade

Question 1

Which situation is the best example of opportunity cost?

Revolt · Accepted Answer

A country chooses to produce bananas instead of wheat.

Question 2

Which region is most likely to export bananas to the United States?

Revolt · Accepted Answer

Central America

Question 3

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

Question 4

Which statement best describes how globalization is affecting the world?

Revolt · Accepted Answer

The world is becoming more globalized and connected.

Question 5

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

Revolt · Accepted Answer

an absolute advantage.

Question 6

What role does competition play in international trade?

Revolt · Accepted Answer

It drives down prices for consumers.

Question 7

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

Revolt · Accepted Answer

specialization.

Question 8

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

Revolt · Accepted Answer

oil

Question 9

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 10

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

International Trade Answers

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