Comparative Advantage and Absolute Advantage in International Trade Quiz
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Questions and Answers

Which term describes a situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can produce the product?

  • Monopoly
  • Comparative advantage (correct)
  • Tariff
  • Trade barrier
  • What is the term for a situation where a country has the exclusive control over the production and distribution of a certain product?

  • Monopoly (correct)
  • Subsidy
  • Protectionism
  • Oligopoly
  • Which term refers to the barriers imposed by a country to restrict or limit the import of goods from other countries?

  • Sanction
  • Trade deficit
  • Embargo
  • Tariff (correct)
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