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- 1. Multiple Choice
Comparative advantages show:
outcomes without trading
who can make more items
competition within countries
who should produce what item at the lowest cost
- 2. Multiple Choice
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the absolute advantage in producing airplanes?JapanUS - 3. Multiple Choice
Specialization and trade are based on:
Absolute advantage
Comparative Advantage
Both advantages
- 4. Multiple Choice
The good in which you have the lowest opportunity cost as compared to another:
absolute advantage
comparative advantage
- 5. Multiple Choice
This is a tax on imports.
quota
embargo
standard
tariff
- 6. Multiple Choice
This is a total ban on goods or services from a country.
standard
quota
embargo
tariff
- 7. Multiple Choice
The USA has had an embargo against this nation for over 40 years?
Brazil
Jamaica
Haiti
Cuba
- 8. Multiple Choice
This sets a limit on the number of something that can enter the nation.
tariff
quota
subsidies
standard
- 9. Multiple Choice
Strategy that limits international trade in order to protect domestic firms:
Free Trade
Protectionism
Balance of Trade
Trade Blocs
- 10. Multiple Choice
Difference between imports and exports
Debit
Balance of Trade
Balanced Trade
Credit
- 11. Multiple Choice
What is the value of a nations currency in relation to a foreign country?
Trade Deficit
Foreign Exchange Market
Exchange Rate
Trade Surplus
- 12. Multiple Choice
What is a decrease in the value of a currency?
appreciation
depreciation
exchange rate
inflation
- 13. Multiple Choice
Whats the relationship between the value of a country's exports and the value of its imports?
Trade Surplus
Balance of Trade
Trade Deficit
Appreciation
Depreciation
- 14. Multiple ChoiceAn increase in the international value of the dollar (appreciation) would most likely benefit who the most?domestic producers who exportcitizens traveling or living abroad from the United StatesGerman citizens vacation in the U.S.Canadian citizen looking to buy property in the U.S.
- 15. Multiple ChoiceIf the U.S. dollar depreciates relative to another currency, which of the following is most likely to occur?U.S. exports will increase to that countryU.S. government will increase the tariff on goods from that countryU.S. trade deficit will become larger to that countryU.S. tourists will visit that country in greater numbers
- 16. Multiple ChoiceWhich of the following is most likely to benefit from an appreciation of U.S. currency?U.S. investors in foreign assets, like bonds, savings accounts, stocksimporters in foreign countries seeking cheaper raw inputsU.S. exporters selling capital equipment to the rest of the worldU.S. travelers to foreign countries
- Answer choicesTagsAnswer choicesTags