International Trade Revision

To focus on producing one thing to improve productivity is known as:

• Specialization
• International trade
• Absolute Advantage
• Supply and Demand

When determining comparative advantage one must determine 

• Opportunity cost
• Specialization
• Absolute Advantage
• Embargos 

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

If a foreign mining company establishes a coal mine in Queensland, the likely impact on the Circular Flow of Income Model for Australia would be:

• An increase in Australia’s unemployment rate and an increase in business investment

• A decrease in Australia’s unemployment rate and an increase in business investment

• An increase Australia’s unemployment rate and a decrease in business investment

• A decrease in Australia’s unemployment rate and a decrease in business investment

Comparative Advantage is the theory:

• a scenario in which one country can manufacture a product at a higher quality and a faster rate for a greater profit than another competing country.

• a condition or circumstance that puts a country in a favourable or superior trade position for example resource endowment

• economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.

• an economic theory where the government seeks to regulate the economy and trade in order to promote domestic industry

Which of the following is most likely to reduce Australia’s import volumes?

• A recession in Australia and an appreciation of the Australian dollar

• An economic expansion in Australia and a depreciation of the Australian dollar

• An economic expansion in Australia and an appreciation of the Australian dollar

• A recession in Australia and a depreciation of the Australian dollar

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• tariff
• quota
• subsidy
• embargo

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

• tariff
• quota
• subsidy
• embargo

Which of the following is not a benefit of trade between nations?

• More stuff
• Better stuff
• cheaper stuff
• similar stuff

If nations limit trade in of clothing who will benefit?

• Domestic Consumers of clothing
• Domestic producers of clothing
• Foreign Producers of clothing 
• department stores who sell clothing