Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

Oil is in short supply across the world. The diagram illustrates oil consumption and oil production (billion tonnes) for selected countries. What conclusion can be drawn from the diagram?

  • AIn Britain, oil has zero opportunity cost.
  • BIn Japan, there is self-sufficiency in oil.
  • CIn Russia, there is no shortage of oil.
  • DIn the United States, rationing is the only solution to oil shortage.

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