Unit 4: The Global Economy
Topic 4.1: Benefits of International Trade Questions
Practice 20 exam-style questions for IB Economics Topic 4.1. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
Which of the following is a benefit of free trade?
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According to the theory of comparative advantage, a country should specialise in producing the good for which it has:
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The trading possibility curve (TPC) lies outside the PPC because:
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Unlock Question41 mark
Which of the following best defines absolute advantage?
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Unlock Question5Identify1 mark
2026
Identify, from the diagram, the level of domestic consumption after the tariff.
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Unlock Question6Sketch2 marks
2026
Sketch labelled production possibility curves for the two countries, assuming constant opportunity cost.
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Unlock Question7Calculate2 marks
2022
Calculate the annual value of Vennland's rice exports.
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Unlock Question8Outline4 marks
Outline three benefits of free trade for an economy.
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Unlock Question9Determine2 marks
2025
Determine which country has the comparative advantage in producing tea.
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Unlock Question10Explain4 marks
2025
Explain two reasons why specialising in tea, where it has a comparative advantage, may not be in Vennland's interest.
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Unlock Question11Identify1 mark
2024
Identify the level of domestic consumption at the world price.
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2022
Calculate the fall in Vennland's rice growers' revenue when the world price drops.
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Unlock Question13Explain4 marks
2026
A country imports steel. The world price of steel has fallen sharply.
Using an international trade diagram, explain the likely effect on the country's imports of steel.
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2026
Sketch constant-cost production possibility curves for two countries.
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Country A can produce 120 tonnes of rice or 60 tonnes of tea. Country B can produce 80 tonnes of rice or 20 tonnes of tea. Which statement is correct?
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Unlock Question16Explain4 marks
2026
A country exports wine. The world price of wine has risen.
Using an international trade diagram, explain how the country's wine exports are likely to change.
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2026
Explain how differences in resources between countries create comparative advantage.
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Unlock Question18Sketch2 marks
2026
Sketch a production possibility curve for each of two countries and mark a consumption point beyond one of them.
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Unlock Question19Calculate2 marks
2026
Calculate the annual value of the country's iron ore exports.
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Unlock Question20Determine2 marks
2026
Determine which country has the comparative advantage in producing wheat.
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