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

International trade and free trade — practice question

Oil is in short supply worldwide. The diagram illustrates oil consumption and production (billion tonnes) in 2007 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, the problem of oil shortage has been solved.
  • DIn the United States, rationing will be the only solution to oil shortage.

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