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- 1. Multiple Choice
If the country of Columbia has an optimal climate, low labor costs and the reputation for the world's best tasting coffee, it has a ______ in coffee production.
Comparative advantage
Specialization
Absolute advantage
Trade Barrier
- 2. Multiple Choice
A trade agreement between 27 countries of with the same currency and open trade between those nations.
NAFTA
EU
WTO
ABC
- 3. Multiple Choice
All of the following are terms used to describe limitations on trade except?
Trade Barriers
Sanctions
Trade restrictions
WTO
- 4. Multiple Choice
This trade barrier limits the number of products that can be brought into a country.
Tariff
Quota
Embargo
Subsidy
- 5. Multiple Choice
This is a tax on imports that is used to increase price of foreign products and raise government revenue.
tariff
quota
subsidy
embargo
- 6. Multiple Choice
The main justification for an embargo on foreign goods is to
Punish a nation
raise revenue
Increase consumption or the good
- 7. Multiple Choice
Developed nations have all of the following except
better education
high levels of technology
better health
low productivity
- 8. Multiple Choice
Underdeveloped nations tend to trade what type of goods
Low skill products
High tech goods
finished products
High skill products
- 9. Multiple Choice
What is PROTECTIONISM?
economic policy of restricting imports from other countries
economic policy of restricting exports from other countries
economic policy of imports from other countries
economic policy encouraging exports from other countries
- 10. Multiple Choice
INTERNATIONAL TRADE is...
the exchange of goods and services within state borders
the exchange of capital, goods, and services within a country's borders
the exchange of capital, goods, and services among nations
designed to discourage the exchange of goods across international borders or territories
- 11. Multiple Choice
The president Trump has enacted tariff barriers China against China and a lot of people worried that China might retaliate and enact the same tariff barriers. This could be called a
Trade war
reallocation of resources
pillar of national security
means of improving trade relations
- 12. Multiple Choice
Which are known as the advantages of international trade (mark all that apply)?
Opportunity to specialize
Encouraging exports and discouraging imports
Positive Balance of Trade for all importers and exporters
Increased revenues
More purchasing options for consumers
- 13. Multiple Choice
In 1962, the United States sanctioned Cuba and prohibited all imports and exports to and from Cuba. This is an example of which trade barrier?
A sanction implemented as a tariff
A sanction implemented as an embargo
A sanction implemented as a quota
A sanction implemented as free trade
- 14. Multiple Choice
Why would a country impose a tariff or quota on imported goods?
to raise the price of imported foreign goods, which would encourage people to buy domestic goods
to raise the price of imported foreign goods to help foreign countries make more money
to raise the price of exported goods so your country makes more money
to lower the price of imported foreign goods, which would encourage people to buy more imports
- 15. Multiple Choice
How has international trade changed the way cars are made (mark all that apply)?
Cars have a higher percentage of its parts coming from domestic sources
Cars have a higher percentage of its parts coming from international sources
Cars tend to innovate with new features more quickly
It is more difficult to say a car is "domestic" by its manufacturer's name alone
- 16. Multiple Choice
The currency used by countries in the EU is the
Pound
Dollar
Euro
Franc
- 17. Multiple Choice
(T/F) Imports are goods and services purchased from other nations.
True
False
- 18. Multiple Choice
The United States has a Competitive Advantage in producing high-tech products because of its infrastructure
in low labor costs and tax policies that promote manual labor
in raw materials and an educated work force
designed around a traditional economy
in conservative businesses that are slow to change
- 19. Multiple Choice
Tires made in Tennessee factories are used on cars in Europe.
import
export
- 20. Multiple Choice
Diamonds found in South Africa are used to make rings in Maine.
import
export
- 21. Multiple Choice
Baseball bats made in Kentucky are used by baseball players in Japan.
import
export
- 22. Multiple Choice
If a nation has more exports than imports, it is said to have
Positive balance of trade
Negative balance of trade
International trade potential
Unfavorable international trade position
- 23. Multiple Choice
(T/F) Economic alliances among nations often fracture political alliances, thus are detrimental to world peace.
True
False
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