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International Trade and the Global Economy — High School Economics practice questions

20 multiple-choice questions and 14 flashcards on International Trade and the Global Economy, about 9% of the High School Economics bank. Every one carries a written rationale.

Written and maintained by the CoStudy team · last updated 2026-10-02 · how we write and review questions

What this chapter covers

International Trade and the Global Economy is one of 11 chapters in CoStudy's High School Economics bank, and it holds 20 of the bank's 225 multiple-choice questions — roughly 9% of the total. That proportion is not arbitrary: chapters follow the certifying body's published exam outline, and the number of questions in each is set by that domain's published weight, so the share of your practice time this chapter takes matches the share of the real exam it accounts for.

Studying by chapter is worth doing once you have a diagnostic score. A single overall percentage tells you whether you are close; it does not tell you which domain is dragging. Working a weak chapter in isolation, and re-testing it in isolation, is the fastest way to move a score that has stalled — and it is why the mock exams in CoStudy report by domain rather than as one number.

Free International Trade and the Global Economy practice questions

5 questions drawn from this chapter, with the full rationale shown — the controlling principle behind the right answer, and why each wrong option tempts and fails.

The USMCA is a trade agreement among:

  1. the U.S., the U.K., and Canada
  2. the U.S., Mexico, and Canada
  3. the U.S., Mexico, and China
  4. all members of the European Union

Answer: B — the U.S., Mexico, and Canada

B) Correct — It replaced NAFTA in 2020. A) The U.K. is not a member. C) China is not a member. D) The EU has its own agreements.

If the dollar depreciates (gets weaker), imported goods become:

  1. cheaper for Americans
  2. more expensive for Americans
  3. tariff-free
  4. unaffected

Answer: B — more expensive for Americans

B) Correct — Each dollar buys less foreign currency. A) Happens when the dollar appreciates. C) Exchange rates do not change tariffs. D) Exchange rates change import prices.

A tariff is:

  1. a tax on imported goods
  2. a limit on the number of imports
  3. a complete ban on trade
  4. a payment to exporters

Answer: A — a tax on imported goods

A) Correct — It raises import prices and protects domestic producers. B) Is a quota. C) Is an embargo. D) Is an export subsidy.

A country has an absolute advantage in a good when it:

  1. has a lower opportunity cost
  2. can produce more of it per worker
  3. exports more of it than it imports
  4. is the only producer

Answer: B — can produce more of it per worker

B) Correct — It is the most productive producer with the same resources. A) Is comparative advantage. C) Describes a trade surplus. D) Is a monopoly.

When one country raises tariffs and others respond with their own tariffs, the result is:

  1. a free-trade agreement
  2. a customs union
  3. a trade war
  4. comparative advantage

Answer: C — a trade war

C) Correct — Both sides may lose from reduced trade. A) Lowers barriers. B) Is an agreement with common tariffs. D) Is about opportunity costs.

International Trade and the Global Economy flashcards

4 cards from the 14 in this chapter.

What was NAFTA, and what replaced it?

North American Free Trade Agreement (1994) among U.S., Canada, Mexico. Replaced by USMCA in 2020.

What is a trade deficit?

When a country imports more than it exports.

What is a tariff?

A tax on imported goods. Raises import prices, protects domestic producers, but raises consumer costs.

What is protectionism?

Policies (tariffs, quotas, subsidies) that shield domestic industries from foreign competition.

Practise the full chapter

These are a sample. The full International Trade and the Global Economy chapter runs 34 items with per-chapter progress tracking, on the web and in the iOS app.

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