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Social Studies
12th
grade
Unit 6 - International Trade, Economics Systems
19 questions
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- 1. Multiple Choice
Economist believe which of the following are benefits of international trade:
there can be increased consumption for all.
global production will be increased.
world resources will be used more efficiently.
all of these are true.
- 2. Multiple Choice
Comparative advantage explains why a nation will benefit from trade when:
it exports more than it imports.
its trading partners are experiencing offsetting losses.
it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
- 3. Multiple Choice
A country that can produce a good using fewer resources than another country has a(n):
lower opportunity cost of producing the good than another country.
absolute advantage.
specialization in the production of the good.
all of these.
- 4. Multiple Choice
Embargos:
ban trade with other countries
generate tax revenues for that country
hurt domestic producers
lower prices of goods
- 5. Multiple Choice
A tariff can be defined as a:
tax on imports.
tax on exports.
legal limit on imports.
legal limit on exports.
- 6. Multiple Choice
The principal objective of WTO is to:
reduce the level of all tariffs and encourage trade
to increase tariffs on all imported goods
prevent the trading of services across nations' borders.
encourage countries to establish quotas.
- 7. Multiple Choice
A restriction on the quantity of a good that can be imported into a country is a(n):
tariff.
quota.
embargo.
restricted exchange rate.
- 8. Multiple Choice
NAFTA is a trade agreement between which of the following countries?
the United States, Cuba, and Brazil.
the United States, Canada, and Mexico.
the United States, Puerto Rico, and Cuba.
Brazil, Bolivia, Peru, and Columbia.
- 9. Multiple Choice
The account which records a nation's foreign economic transactions is called the:
Trade Account.
T account.
Exchange Market.
Balance of Payments.
- 10. Multiple Choice
An exchange rate is the number of units of:
a nation's money that is equal to one unit of another nation's money.
a nation's output that is equal to one unit of another nation's output.
gold backing a nation's money.
none of these.
- 11. Multiple Choice
A market economy:
answers the What, How and For Whom questions the way they have always been answered
answers the What, How and For Whom questions by central authority
answers the What, How and For Whom questions using prices determined by the interaction of supply and demand
- 12. Multiple Choice
A traditional economy:
answers the What, How and For Whom questions the way they have always been answered
answers the What, How and For Whom questions by central authority
answers the What, How and For Whom questions using prices determined by the interaction of supply and demand
- 13. Multiple Choice
A command economy:
answers the What, How and For Whom questions the way they have always been answered
answers the What, How and For Whom questions by central authority
answers the What, How and For Whom questions using prices determined by the interaction of supply and demand
- 14. Multiple Choice
In a command economy, the basic economic questions are answered by:
individuals and sellers
the traditional methods
central planners
none of these
- 15. Multiple Choice
Who was know as the father of modern economics and believed in capitalism?
Karl Marx
Adam Smith
Robert Smith
Jeffrey Sachs
- 16. Multiple Choice
Which economic system uses the "invisible hand theory"?
a traditional economy
a command economy
a market economy
a communist economy
- 17. Multiple Choice
Which of the following is a characteristic of capitalism?
Equality of income.
Government decision-making is preferred to decentralized decision-making.
Market determination of prices and quantity.
Government ownership of all capital.
- 18. Multiple Choice
Which of the following applies to a real-world socialistic economy?
Private ownership of all factors of production.
Government ownership of all factors of production.
Government ownership of most of the factors of production.
Lack of central planning.
- 19. Multiple Choice
Karl Marx published which of the following books?
Das Kapital
General Theory of Communism
Wealth of Nations
Capitalist Manifesto
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