The Global Economy

What a nation specializes in producing has much to do with its resources. T/F

• True

• False

The ability to make a product cheaply would encourage a country to produce and export it to other countries.

• True

• False

Countries create quotas and tariffs to increase the volume of trade with their neighboring countries.

• True

• False

When the US dollar grows more valuable in relation to the euro, it has also grown more valuable in relation to every other currency.

• True

• False

To narrow one's focus in order to become an expert at producing a particular good or service is to ______________.

• Specialize

• expand

• enlarge

• contract

Which of the following phrases defines the word "export"?

• to send a product to another country to sell.

• to purchase a product from another country.

• to place taxes on goods purchased from other countries.

• to limit how much of a good can come from other countries.

Which of the following phrases defines the word "import"?

• to limit how much of a product can come from another country.

• to send a product to another country to sell.

• to purchase a product from another country

• to tax a product from another country.

What is a country's currency?

• its government's savings bonds

• reports on its imports and exports

• the coins and paper money it issues

• the daily ups and downs of its stock market

The number that is used to show the value of one currency compared to another is called the _______________.

• trade rate

• currency rate

• exchange rate

• import-export exchange

A country's decisions not to trade with another country is called a(n)_________________.

• quota

• tariff

• embargo

• exchange rate