Macroeconomics and International Unit 3 Exam

Front

What are the benefits of international trade for nations? Options: Increased isolation, Access to a larger variety of goods and services, Decreased competition, Reduced economic growth

Back

Access to a larger variety of goods and services

Front

What does it mean for a nation to have a comparative advantage in production?

Back

It can produce a good at a lower opportunity cost than other nations.

Front

List the common types of trade barriers: Tariffs, quotas, standards, and subsidies, Free trade agreements, open markets, and globalization, Import licenses, export bans, and trade unions, Currency exchange, inflation, and interest rates

Back

Tariffs, quotas, standards, and subsidies

Front

How can trade barriers benefit domestic producers?

Back

By protecting them from foreign competition.

Front

What is the role of the ports of Savannah and Brunswick in Georgia's economy?

Back

They facilitate international trade and boost the local economy.

Front

How do changes in exchange rates affect international trade?

Back

They can make exports cheaper or more expensive.

Front

List the factors that can cause changes in exchange rates: Interest rates, inflation, and political stability, Population growth, climate change, and cultural trends, Technological advancements, education levels, and urbanization, Language diversity, historical events, and geographical location

Back

Interest rates, inflation, and political stability

Front

What are the effects of currency appreciation on a nation's economy?

Back

It makes imports cheaper and exports more expensive.

Front

How does currency depreciation affect net exports?

Back

It increases net exports by making them cheaper.

Front

What are the costs to consumers of imposing trade barriers?

Back

Reduced variety and higher prices for goods