Intro to Business Economics Unit Review (Ch. 2 and 3)

As access to technology skyrockets and barriers to trade continue to fall, global business opportunities have increased.

• True

• False

The United States has a trade surplus.

• True

• False

A measurement of the value of one nation's currency relative to the currency of other nations is known as the dollar trade value.

• True

• False

There is less government involvement in socialist economies than in communist economies.

• True

• False

Competition is essential for the free market system to function.

• True

• False

All countries' currency have the same value.

• True

• False

Global trade INCREASES dependence on one economy, raising the risk for multinational firms

• True

• False

International trade offer companies source of new ideas

• True

• False

A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources

• True

• False

A tariff is a ban on trade with another country.

• True

• False