Economics Multiple Choice Question – 25 September 2021

A country decides to remove all its tariffs and engage in free international trade.

What will be the final decision the country has to make before free trade takes place?

Select ONE answer:

1. deciding which resources to allocate to the production of goods and services for international trade
2. deciding which goods and services should be provided for international trade
3. identifying the opportunity costs of production of goods and services which might be used for international trade
4. setting an appropriate exchange rate for the international trade of goods and services

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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