Lesson 4.1.2

4.1.2 Specialisation and trade Quiz: Pearson Edexcel Economics, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.1.2, Specialisation and trade: 20 multiple choice questions for the Pearson Edexcel Economics (9EC0), Unit 4: Theme 4: A global perspective, written with Revision Ninja.

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The 20 questions

  1. If a country produces either 12 cloth or 4 wine, what is the opportunity cost of 1 cloth?

    • 3 wine
    • 4 wine
    • 0.33 wine
    • 0.25 wine

  2. If Country B produces either 10 cloth or 10 wine, what is the opportunity cost of 1 wine?

    • 0.5 cloth
    • 10 cloth
    • 2 cloth
    • 1 cloth

  3. Country A's opportunity cost of cloth is 0.33 wine; B's is 1. Who has comparative advantage in cloth?

    • Neither country
    • Both countries
    • Country B
    • Country A

  4. Country A produces 12 cloth with set resources; Country B produces 10. Who has absolute advantage in cloth?

    • Neither country
    • Both countries
    • Country B
    • Country A

  5. What does the basic comparative advantage model assume about factor mobility between countries?

    • Dynamic
    • Subject to tariffs
    • Completely immobile
    • Perfectly mobile

  6. Which cost is assumed to be zero in the basic comparative advantage trade model?

    • Transport costs
    • Raw material costs
    • Tariff costs
    • Capital costs

  7. What is the primary benefit to global output when countries specialise based on comparative advantage?

    • Wages equalize globally
    • Tariffs decrease
    • Prices drop everywhere
    • Total output rises

  8. What major economic risk increases for a country over-specialising in a single export good?

    • Export price volatility
    • Constant returns
    • Revenue stability
    • Dynamic efficiency

  9. Why do workers in import-competing domestic industries often suffer when international trade expands?

    • Export subsidies
    • Foreign competition
    • Exchange rate appreciation
    • High interest rates

  10. If the trade rate is 2 cloth per 1 wine, how much wine is obtained for 6 cloth?

    • 3 wine
    • 4 wine
    • 2 wine
    • 12 wine

  11. Country A's wine cost is 3 cloth; B's is 1 cloth. What rate enables mutually beneficial trade?

    • 1 to 3 cloth
    • Over 3 cloth
    • Exactly 4 cloth
    • Under 1 cloth

  12. A country lacking any absolute advantage still gains from trade by exploiting which economic principle?

    • Purchasing power parity
    • Comparative advantage
    • Economies of scale
    • Absolute advantage

  13. What causes a country's opportunity cost to rise as it expands production of a good?

    • Constant returns
    • Zero transport costs
    • Imperfect factor substitution
    • Perfect factor mobility

  14. Which assumption is a major simplification in the basic two-good comparative advantage model?

    • Two countries trading
    • High transport costs
    • Protectionist tariffs
    • Variable opportunity costs

  15. What type of unemployment occurs when free trade causes job losses in declining industries?

    • Frictional unemployment
    • Cyclical unemployment
    • Structural unemployment
    • Seasonal unemployment

  16. What does a country possess if it can produce a good using fewer resources than another country?

    • Economies of scale
    • Absolute advantage
    • Comparative advantage
    • Competitive advantage

  17. According to comparative advantage theory, a country should specialise in the good with what feature?

    • Highest market price
    • Highest absolute output
    • Lowest wage rate
    • Lowest opportunity cost

  18. A country can produce 12 cloth or 4 wine. Giving up 6 cloth allows how much extra wine?

    • 3 wine
    • 1 wine
    • 2 wine
    • 4 wine

  19. Why is comparative advantage based on opportunity costs rather than total output levels?

    • Fixes exchange rates
    • Ignores trade-offs
    • Reflects relative costs
    • Measures absolute efficiency

  20. Which real-world factor prevents countries from specialising completely in production?

    • Resource mobility
    • Free trade
    • Constant returns
    • Transport costs

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