Advantages and Disadvantages of Free Trade (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What occurs when governments remove artificial barriers restricting exchange between countries?
What occurs when governments remove artificial barriers restricting exchange between countries?
Free trade
What measures the efficiency used to determine comparative advantage?
What measures the efficiency used to determine comparative advantage?
Opportunity cost
According to comparative advantage, what should countries focus on producing?
According to comparative advantage, what should countries focus on producing?
Goods with greatest relative efficiency
Can both countries benefit from trade if one is more efficient at producing everything?
Can both countries benefit from trade if one is more efficient at producing everything?
Yes, relative efficiency matters
What benefit results from specialisation allowing increased production volumes?
What benefit results from specialisation allowing increased production volumes?
Economies of scale
How does free trade accelerate the spread of new technologies across borders?
How does free trade accelerate the spread of new technologies across borders?
Through competition and diffusion
Which factor contributes to higher living standards through free trade?
Which factor contributes to higher living standards through free trade?
Lower prices from competition
What challenge does opening to international trade create for workers?
What challenge does opening to international trade create for workers?
Job losses in uncompetitive industries
Why might infant industries struggle under free trade?
Why might infant industries struggle under free trade?
Compete before reaching competitive scale
What environmental problem can free trade create?
What environmental problem can free trade create?
Race to the bottom in standards