Voluntary Trade Quiz

Which of the following is an example of a quota?

• The United Kingdom taxing Germany 10% on imported steel

• North Korea refusing to trade with the U.S. because they have a capitalist economy

• Canada enabling free trade with Mexico to eliminate previous quotas

• Russia limiting the amount of imported Uranium from Germany

Which country has recently left the European Union?

• Germany

• United Kingdom

• Switzerland

• France

If the exchange rate of a country falls, what happens to value of that country's currency?

• it will fall

• it will stay the same

• it will rise

• it will disappear

How did adopting the Euro benefit European Union member-states?

• It allowed member-states to economically specialize

• It eliminated the need for currency exchange among member-states

• It created another barrier to trade with non-members

• It lowered the value of the U.S. dollar to make European countries more relevant

What was the main purpose of starting the European Union?

• To stop the Nazi's

• To encourage sanctions ( trade barriers) against Russia

• To promote free/voluntary trade throughout Europe

• To end the Cold War on peaceful terms throughout Europe

Which of the following countries has the LEAST amount of economic freedom ( is the closest to command-based economy)?

• Russia

• Germany

• The United Kingdom

• The United States

What is the most common type of economy in the world?

• traditional

• pure market

• pure command

• mixed market

What information do exchange rate tables provide?

• the type of economic system present in each country

• the type of government present in each country

• the value of each country's currency relative to each other

• the value of each country's per capita gross domestic product

Which of the following is an example of an embargo:

• The United States has put a 12% tax on imported Mexican goods.

• After Russia invaded Ukraine, European countries enforced restrictions that did not allow any European country to trade with Russia or accept any of Russia's agricultural resources.

• After France and the U.K. got into a political dispute, France enforced a sanction that only allowed for 30,000 pounds of U.K. steel to imported a year.

• After signing a free trade agreement, Switzerland and Germany no longer have any bans on trade with one another.

Germany specializes in the production of automobiles. Based on this information, which statement best describes Germany?

• Germany has no natural resources that other countries demand.

• Germany has a low gross domestic product product and a high level of unemployment.

• Germany sells automobiles to domestic consumers for a very high price.

• Germany can produce automobiles for export more efficiently than other countries