Unit 4: The Global Economy
Topic 4.1: Benefits of International Trade Questions
Practice 20 exam-style questions for IB Economics Topic 4.1. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
Which of the following best defines absolute advantage?
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According to the theory of comparative advantage, a country should specialise in producing the good for which it has:
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The trading possibility curve (TPC) lies outside the PPC because:
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According to the theory of comparative advantage, a country should specialise in producing the good for which it has:
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Which of the following is a benefit of free trade?
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Which of the following best defines absolute advantage?
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Which of the following is a benefit of free trade?
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Which of the following is an assumption of the theory of comparative advantage?
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Explain why specialisation according to comparative advantage leads to an increase in total world output.
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Define the terms "absolute advantage" and "comparative advantage".
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An improvement in a country's terms of trade means that:
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Which of the following would cause a deterioration in a country's terms of trade?
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Outline three benefits of free trade for an economy.
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Which of the following is an assumption of the theory of comparative advantage?
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Explain why specialisation according to comparative advantage leads to an increase in total world output.
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Explain one factor that could cause an improvement in a country's terms of trade.
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Country A can produce 120 tonnes of rice or 60 tonnes of tea. Country B can produce 80 tonnes of rice or 20 tonnes of tea. Which statement is correct?
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Define the terms of trade and explain how they are measured.
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Country A can produce 120 tonnes of rice or 60 tonnes of tea. Country B can produce 80 tonnes of rice or 20 tonnes of tea. Which statement is correct?
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