Lesson M4.1.1

M4.1.1 International trade and its patterns over time Quiz: OCR Economics, Unit 9

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson M4.1.1, International trade and its patterns over time: 20 multiple choice questions for the OCR Economics (H460), Unit 9: The global context, written with Revision Ninja.

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The 20 questions

  1. What exists when a nation produces a good at a lower opportunity cost than another nation?

    • Comparative advantage
    • Competitive advantage
    • Terms of trade
    • Absolute advantage

  2. What exists when a nation produces a good using fewer resources than any other nation?

    • Comparative advantage
    • Structural advantage
    • Absolute advantage
    • Economies of scale

  3. Country A produces 10 cars or 20 tonnes of wheat. What is the opportunity cost of 1 car?

    • 20 tonnes wheat
    • 2 tonnes wheat
    • 10 tonnes wheat
    • 0.5 tonnes wheat

  4. Which sector accounts for the largest proportion of total UK exports in recent decades?

    • Tertiary sector
    • Primary sector
    • Quaternary sector
    • Secondary sector

  5. Which economic model predicts trade volume based on geographical distance and economic size of nations?

    • Gravity model
    • Heckscher-Ohlin model
    • Ricardian model
    • Harrod-Domar model

  6. What term describes two countries exporting and importing similar products within the exact same industry?

    • Countertrade
    • Inter-industry trade
    • Bilateral trade
    • Intra-industry trade

  7. What is the numerator divided by the denominator in the terms of trade index formula?

    • Domestic over foreign prices
    • Import over export prices
    • Export over import prices
    • Wage over profit prices

  8. If export prices fall by 10% while import prices remain unchanged, what happens to terms of trade?

    • Improves by 10%
    • Deteriorates by 90%
    • Improves by 90%
    • Deteriorates by 10%

  9. What long-term structural change occurred in the UK's trade balance during the late twentieth century?

    • Growing trade surplus
    • Zero service exports
    • Growing trade deficit
    • Balanced current account

  10. Which nation experienced the most rapid expansion in its share of global manufacturing exports since 1990?

    • Brazil
    • China
    • Russia
    • India

  11. What occurs when joining a trading bloc shifts trade from a lower-cost non-member to a higher-cost member?

    • Trade restriction
    • Trade diversion
    • Trade deflection
    • Trade creation

  12. Which feature is present in a common market but absent in a basic free trade area?

    • Common external tariff
    • Zero internal tariffs
    • Fixed exchange rates
    • Free factor movement

  13. What does the Prebisch-Singer hypothesis suggest happens over time to the terms of trade for primary exporters?

    • Rapid fluctuation
    • Continuous improvement
    • Continuous deterioration
    • Unchanged stability

  14. If a country opens to free trade where world price is below domestic price, domestic consumer surplus will:

    • Remain unchanged
    • Fall to zero
    • Increase
    • Decrease

  15. Which factor explains why high-income developed countries trade heavily with other high-income developed countries?

    • Extreme factor endowments
    • Unskilled labour abundance
    • Similar consumer preferences
    • High import tariffs

  16. Which nation has comparative advantage in cloth if its opportunity cost is 0.25 wheat compared to 0.5 wheat?

    • Both nations equally
    • Higher cost nation
    • Lower cost nation
    • Neither nation

  17. How has the growth of multinational corporations impacted the proportion of intra-firm trade globally?

    • Remained completely unchanged
    • Decreased significantly
    • Increased significantly
    • Reduced to zero

  18. An improvement in a country's terms of trade index means export prices relative to import prices have:

    • Increased
    • Tripled
    • Equalled
    • Decreased

  19. What is the immediate direct effect of a government imposing a tariff on an imported good?

    • Reduces government revenue
    • Increases import volume
    • Decreases domestic price
    • Increases domestic price

  20. What effect has the widespread adoption of containerisation had on international transport costs?

    • Doubled overall costs
    • Drastically reduced costs
    • Slightly increased costs
    • Had no effect

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