Lesson 4.2.6.2

4.2.6.2 Trade Quiz: AQA Economics, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.2.6.2, Trade: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.

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The 20 questions

  1. A country has a comparative advantage when it can produce a good at a lower what?

    • Wage rate
    • Absolute cost
    • Marginal tax rate
    • Opportunity cost

  2. What occurs when a country produces a good using fewer resources than another country?

    • Comparative advantage
    • Absolute advantage
    • Terms of trade
    • Economies of scale

  3. According to comparative advantage theory, what happens to total world output through specialisation and trade?

    • It stays constant
    • It fluctuates
    • It increases
    • It decreases

  4. What is a tax imposed specifically on imported goods called?

    • Embargo
    • Export subsidy
    • Tariff
    • Quota

  5. What protectionist measure places a physical limit on the quantity of imported goods?

    • Embargo
    • Export subsidy
    • Import quota
    • Import tariff

  6. What is a government payment to domestic firms that sell products abroad called?

    • Preferential duty
    • Import tariff
    • Export subsidy
    • Import quota

  7. What type of trading bloc features free internal trade and a common external tariff?

    • Customs union
    • Monetary union
    • Economic union
    • Free trade area

  8. Country A's opportunity cost of cloth is 2 wheat; Country B's is 1. Who has comparative advantage in cloth?

    • Both countries
    • Country A
    • Neither country
    • Country B

  9. Country A produces 4 wheat per worker. Country B produces 1 wheat per worker. Who has absolute advantage in wheat?

    • Country B
    • Both countries
    • Country A
    • Neither country

  10. What is the immediate effect of imposing an import tariff on domestic market prices?

    • Price falls
    • Price increases
    • Supply increases
    • Price stays constant

  11. Unlike a tariff, who receives the revenue rents generated by an import quota?

    • Domestic government
    • Local consumers
    • Foreign exporters
    • Central bank

  12. What is a primary justification given by governments for adopting protectionist trade policies?

    • Eliminating trade barriers
    • Increasing consumer surplus
    • Infant industry protection
    • Maximising global output

  13. What is a key negative economic consequence of widespread protectionism among trading partners?

    • Lower domestic prices
    • Trade retaliation
    • Increased competition
    • Higher global output

  14. Which feature is a core pillar of the Single European Market?

    • Uniform income taxes
    • Fixed exchange rates
    • Common fiscal policy
    • Free movement

  15. What is a primary role of the World Trade Organisation?

    • Printing global currency
    • Setting tax rates
    • Settling trade disputes
    • Directing foreign aid

  16. What is a major economic drawback of using tariffs to protect domestic jobs?

    • Reduced market share
    • Increased exchange rates
    • Lower domestic output
    • Higher consumer prices

  17. Which type of unemployment is most directly caused by foreign competition from international trade?

    • Cyclical unemployment
    • Structural unemployment
    • Frictional unemployment
    • Seasonal unemployment

  18. What basis for trade exists when a country produces a good at a lower opportunity cost?

    • Protective advantage
    • Comparative advantage
    • Economies of scale
    • Absolute advantage

  19. What key feature distinguishes a customs union from a free trade area?

    • Single currency
    • Common external tariff
    • Free labour movement
    • No internal tariffs

  20. Which protectionist policy places a tax on imported goods?

    • Embargo
    • Quota
    • Subsidy
    • Tariff

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