Lesson 4.1.3

4.1.3 Pattern of trade Quiz: Pearson Edexcel Economics, Unit 4

20 questions

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Lesson 4.1.3, Pattern of 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. Which factor determines the pattern of trade based on relative opportunity costs between countries?

    • Absolute advantage
    • Comparative advantage
    • Trade deficits
    • Exchange rate pegging

  2. How has the growth of emerging economies like China mainly shifted global trade patterns?

    • Reduced commodity demand
    • Eliminated trade blocs
    • Lowered global trade
    • Increased manufactured exports

  3. What trade pattern effect occurs when a bilateral trade agreement redirects imports away from non-members?

    • Trade diversion
    • Comparative advantage
    • Trade creation
    • Terms of trade

  4. If a country's exchange rate appreciates, what is the most likely effect on export volumes?

    • Import prices rise
    • Export volumes rise
    • Export volumes fall
    • Trade surplus increases

  5. Assuming price elastic foreign demand, how does currency depreciation affect a country's export volumes?

    • Export volumes fall
    • Export prices increase
    • Import volumes rise
    • Export volumes rise

  6. What term describes switching trade from a low-cost non-member to a higher-cost member state?

    • Trade diversion
    • Comparative advantage
    • Terms of trade
    • Trade creation

  7. What term describes replacing high-cost domestic production with cheaper imports from a trade bloc partner?

    • Trade restriction
    • Trade diversion
    • Comparative disadvantage
    • Trade creation

  8. Removing tariffs on low-cost partner imports will most likely cause imports from that partner to:

    • Decrease
    • Increase
    • Remain unchanged
    • Become zero

  9. Why might the growth of trading blocs reduce overall economic efficiency globally?

    • Free trade areas
    • Trade creation
    • Lower tariffs
    • Trade diversion

  10. Why have developed countries increased imports of manufactured goods from emerging economies?

    • Stronger currencies
    • Higher import tariffs
    • Lower production costs
    • Higher transport costs

  11. How do rising Chinese labour costs affect the global pattern of trade?

    • Transport costs rise
    • China imports less
    • Global tariffs fall
    • Production shifts elsewhere

  12. A shift in export share from cars to services is primarily caused by changes in:

    • Absolute advantage
    • Fixed exchange rates
    • Import quotas
    • Comparative advantage

  13. Which factor directly alters relative export prices and short-term trade flows between two nations?

    • Exchange rate changes
    • Transport mode changes
    • Domestic tax rates
    • Population size

  14. Why do nations usually trade more with neighbouring countries than distant ones?

    • Higher tariff rates
    • Equal inflation rates
    • Lower transport costs
    • Identical currencies

  15. How can a global demand shift alter trade flows without changes in production costs?

    • Fixes exchange rates
    • Reduces transport costs
    • Changes relative prices
    • Increases import tariffs

  16. What is meant by the term trade flows between countries?

    • Exchange rates
    • Interest payments
    • Tariff revenues
    • Imports and exports

  17. Which trend best illustrates a major shift in global trade patterns in recent decades?

    • Falling trade volume
    • Declining service trade
    • Zero tariff rates
    • Rising emerging exports

  18. Which currency change can cause a country to switch from exporting a good to importing it?

    • Sustained currency depreciation
    • Zero inflation rate
    • Sustained currency appreciation
    • Fixed tariff rate

  19. What happens to the domestic price of imports when a country's currency depreciates?

    • Tariffs fall
    • Price increases
    • Price decreases
    • Price remains constant

  20. Trade creation occurs in a customs union when domestic production is replaced by:

    • Cheaper partner imports
    • Dearer partner imports
    • Higher domestic tariffs
    • Non-member goods

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