International Trade Exam Questions and Answers
It takes brothers John and Dan the same amount of time each to clean the room they share, but John can mow the lawn faster than Dan. Which action would give them a comparative advantage? - Answer-if John mowed the lawn and Dan cleaned their room
A...
It takes brothers John and Dan the same amount of time each to clean the room they
share, but John can mow the lawn faster than Dan. Which action would give them a
comparative advantage? - Answer-if John mowed the lawn and Dan cleaned their room
A company in Maine sends lobsters to France. What is this an example of? - Answer-
exporting
The Middle East is best associated with which internationally traded product? - Answer-
oil
Which situation might cause a country to specialize? - Answer-wheat production in a
region with fertile soil
Why does the US import oil? - Answer-because it does not produce enough oil
Which is the best example of opportunity cost? - Answer-NOT A country that chooses to
invest in manufacturing and agriculture.
In regard to trade, the United States - Answer-imports and exports goods and services.
Which is the best example of a country that is dependent on other countries? - Answer-
a country that has little fertile soil
Which is an example of a country that is overly dependent on another country for critical
goods and services? - Answer-a country that imports all its oil
How does international trade best benefit specialization? - Answer-A country can make
and sell goods affordably and buy goods it cannot make.
Why would a country want to establish absolute advantage? - Answer-to produce goods
more efficiently than other countries
Which statement best describes how globalization is affecting the world? - Answer-The
world is becoming more globalized and connected.
A country that makes a product more inexpensively and efficiently than another country
has - Answer-an absolute advantage.
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