ECON Unit 05 - Final Exam Review

The most important indicator to determine the development level of a country is:

• GDP per capita

• Gross Domestic Product

• trade balance

• export ratio

If the value of exports is greater than imports, then a nation has a:

• trade balance.

• trade surplus.

• trade deficit.

If a country's money depreciates, its products become:

• more expensive to other countries.

• less expensive to other countries.

$1 will purchase 10 Russian rubles on Monday. By Tuesday, it can purchase 12 rubles. The price of American exports to Russia would:

• increase.

• decrease.

• remain the same.

Import barriers to make domestic goods cheaper will also cause companies:

• to make higher quality products.

• to lose the incentive to become more efficient.

The European Union is a trade and travel agreement that makes movement of people and goods:

• easier.

• harder.

• the same.

United States major trading partners include:

• Mexico, Canada and China.

• Mexico, Cuba and North Korea.

• Mexico, Indonesia and Iran.

What is the name of the treaty that gets rid of trade barriers between North American countries?

• NAFTA

• EURO

Why do some people favor protectionism?

• It helps keep jobs in America.

• It helps make businesses more productive.

Countries that use a lot of energy tend to have a high level of:

• underutilization.

• unemployment.

• industrialization.

• infant mortality.