International Trade Mock Test Quiz: Trivia!

A country’s consumption possibilities are the same as its production possibilities

Equilibrium has been reached with the maximum gains from specialization and trade

Equilibrium has been reached with the maximum amount of international trade

The nation has such a high standard of living that there are technically no poor people

the countries’ production possibilities curve

The autarky equilibrium

He length of time two individuals or countries have been trading

The exchange rates of two goods

The same as its production possibilities frontier only if there is no international trade

Never the same as its production possibilities frontier

The same as its production possibilities frontier only if there is advantageous trade

Always the same as its production possibilities frontier

The wealth of large, industrialized nations can be spread throughout the world

Total world output increases when each country specializes

Countries can boost their economies by increasing exports

All the above

Tariffs

Self-sufficiency

Autarky equilibrium

Comparative advantage

When each country has its own comparative advantage

If one country has absolute advantages in the production of every good

When the opportunity costs of producing each good are equal for both trading partners

If total world production equals total world consumption

Has the lowest opportunity cost of producing that good

Can produce that good using the fewest resources

Will produce that good using the most expensive resources

None of these

Exists only when one producer can make the product using fewer resources than any other producer

Leads to the most efficient allocation of resources and the greatest combined output

Eliminates specialization, so that each country produces all of its own needs independently

All the above are correct

Some countries have educated, trained workers, which other countries have unskilled workers

Tastes and preferences tend to be different in different countries

The world price of a good is determined by the world supply and demand for the product

There is no reason for specialization

The domestic price will prevail, and the world price is irrelevant

The country’s import line is horizontal

The country’s exports of the product will increase

Can not be determined