Lesson 4.1.9

4.1.9 International competitiveness Quiz: Pearson Edexcel Economics, Unit 4

20 questions

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Lesson 4.1.9, International competitiveness: 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 metric is a standard measure of a country's international competitiveness?

    • Relative unit labour costs
    • Current account balance
    • Gross domestic product
    • Consumer price index

  2. A worker earns £20 per hour and produces 5 units per hour. What is the unit labour cost?

    • £15
    • £0.25
    • £4
    • £100

  3. Country X has unit labour costs of £4 and Country Y has £5. What is X's relative unit labour cost?

    • 0.8
    • 0.20
    • 1.25
    • 20.0

  4. If labour productivity rises by 10% while wages rise by 5%, unit labour costs will:

    • Fall
    • Double
    • Remain constant
    • Rise

  5. Which non-price factor directly increases a country's international competitiveness?

    • Higher exchange rate
    • Higher tariff rates
    • Lower productivity growth
    • Higher product quality

  6. Which measure compares a country's export prices with competitors in a common currency?

    • Terms of trade
    • Nominal exchange rate
    • Relative export prices
    • Relative unit labour costs

  7. What is a key macroeconomic benefit of high international competitiveness?

    • Capital flight
    • Export growth
    • Rising import penetration
    • Current account deficit

  8. What is a major risk for a country that becomes internationally uncompetitive?

    • Current account deficit
    • Rising productivity
    • Export growth
    • Inward foreign investment

  9. If a country's currency appreciates while wages remain unchanged, how does price competitiveness change?

    • It stays unchanged
    • It fluctuates wildly
    • It improves
    • It worsens

  10. How can a country export successfully despite having higher unit labour costs than competitors?

    • Lower productivity
    • High import tariffs
    • Currency appreciation
    • High product quality

  11. Which change directly improves a country's relative unit labour costs against competitors?

    • Higher import tariffs
    • Faster wage growth
    • Currency appreciation
    • Faster productivity growth

  12. Which factor is a measure of non-price competitiveness rather than price competitiveness?

    • Unit labour costs
    • Exchange rate
    • Relative export prices
    • Brand reputation

  13. What is the most likely consequence of a sustained rise in relative unit labour costs?

    • Lower unemployment
    • Current account surplus
    • Rising export sales
    • Falling export share

  14. Which policy approach is most effective at improving long-run international competitiveness?

    • Demand-side expansion
    • Import quotas
    • Supply-side policies
    • Protectionist tariffs

  15. What is a major drawback of relying on currency depreciation to maintain competitiveness?

    • Falling domestic wages
    • Lower export volumes
    • Higher import inflation
    • Higher productivity growth

  16. Which of the following is a non-price determinant of international competitiveness?

    • Exchange rate
    • Export prices
    • Product reliability
    • Relative wages

  17. Country X has unit labour costs of 6 and Country Y has 4. What is X's relative cost?

    • 1.5
    • 2.0
    • 0.67
    • 24.0

  18. If wages rise by 8% and productivity rises by 3%, what happens to unit labour costs?

    • They stay constant
    • They fall
    • They rise
    • They reach zero

  19. What is a major limitation of using relative unit labour costs to measure competitiveness?

    • Ignores inflation
    • Ignores wage rates
    • Ignores non-price factors
    • Ignores exchange rates

  20. How does international uncompetitiveness typically affect a country's labour market?

    • Structural unemployment
    • Rapid wage inflation
    • Higher participation rates
    • Shortage of workers

All Pearson Edexcel Economics quizzes