Ch. 26 Quiz

Goods or services that a country sells to other nations

• Duty
• Tariff
• Export
• Import

Goods or services that a country buys from other nations.

• Duty
• Tariff
• Export
• Import

When a country has the ability to produce a product at a lower opportunity cost than another country.

• Comparative Advantage
• Favorable Advantage
• Absolute Advantage
• Positive Net Export

The price of one country's currency in terms of another country's currency.

• Tariff
• Duty Tax
• Exchange Rate
• Fiscal Policy

A tax placed on imports

• Quota
• Duty Tax
• Protectionism
• Tariff

The belief in using trade barriers to discourage the importation of foreign goods.

• Tariff
• Protectionism
• Import Quota
• Export

When a nation imports more than they export, that nation has a

• Free trade agreement
• Trade surplus
• Trade deficit
• Trade free economic system

What is the primary purpose NAFTA?

• To reduce trade barriers among the US, Canada, and Mexico
• To reduce trade barriers among Central America and Mexico
• To reduce trade barriers among Brazil and Mexico
• To encourage free trade between the US, Europe, and Canada

The most serious type of trade barrier.

• Quota
• Excise Tax
• Tariff
• Embargo

Those in favor protectionist trade policies would MOST likely

• Support a rediction in tariffs
• Argue against trade barriers
• Argue for trade barriers
• believe that trade restrictions harm consumers.