Question

1. which statement best explains the difference between an import and an export?

a. an import is a good that a country sells to another country and an export is a
good a country buys from another country.
b. both imports and exports impact global trade but only exports are included in a
country’s gdp.
c. imports are goods a country buys from other countries and exports are goods a
country sells to other countries.
d. most countries have more imports than exports.

1. saudi arabia has an abundant supply of oil and can drill for oil on public land rather

cheaply. due to the supply of oil saudi arabia has and the cheap production of oil in
saudi arabia, what do you call that advantage saudi arabia has in relation to oil
production?
a. export advantage
b. supply advantage
c. comparative advantage
d. monetary advantage

Explanation:

Question 3

To determine the best explanation for import and export:

• Option a swaps import and export definitions (import is bought, export is sold).
• Option b is incorrect because both imports (net of exports) and exports factor into GDP (GDP = C + I + G + (X - M), where X=exports, M=imports).
• Option c correctly defines imports (goods bought from other countries) and exports (goods sold to other countries).
• Option d is not a definition of the difference, just a claim about trade balances (not all countries have more imports than exports).

To identify Saudi Arabia’s oil production advantage:

• Option a (Export Advantage) is not a standard economic term for production efficiency.
• Option b (Supply Advantage) is vague; the key is relative efficiency in production.
• Option c (Comparative Advantage) refers to producing a good at a lower opportunity cost than others. Saudi Arabia’s abundant oil and cheap drilling give it a lower opportunity cost for oil production.
• Option d (Monetary Advantage) relates to currency/finance, not production efficiency.

Answer:

c. Imports are goods a country buys from other countries and exports are goods a country sells to other countries.

Question 4