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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21 mark
According to the theory of comparative advantage, a country should specialise in producing the good for which it has:
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31 mark
The trading possibility curve (TPC) lies outside the PPC because:
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41 mark
Which of the following best defines absolute advantage?
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5Identify1 mark
2026
Identify, from the diagram, the level of domestic consumption after the tariff.
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6Sketch2 marks
2026
Sketch labelled production possibility curves for the two countries, assuming constant opportunity cost.
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7Calculate2 marks
2022
Calculate the annual value of Vennland's rice exports.
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8Outline4 marks
Outline three benefits of free trade for an economy.
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9Determine2 marks
2025
Determine which country has the comparative advantage in producing tea.
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10Explain4 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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11Identify1 mark
2024
Identify the level of domestic consumption at the world price.
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12Calculate2 marks
2022
Calculate the fall in Vennland's rice growers' revenue when the world price drops.
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13Explain4 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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14Sketch2 marks
2026
Sketch constant-cost production possibility curves for two countries.
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151 mark
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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16Explain4 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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17Explain10 marks
2026
Explain how differences in resources between countries create comparative advantage.
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18Sketch2 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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19Calculate2 marks
2026
Calculate the annual value of the country's iron ore exports.
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20Determine2 marks
2026
Determine which country has the comparative advantage in producing wheat.
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