European Economics Part 2

What is the term used to describe a good or service produced within a country and sold outside of the country’s borders?

• import

• export

• quota

• tariff

Mandrakes do not grow in the United Kingdom during the summer months. So, in order to sell mandrakes to Hogwarts throughout the year, Diagon Alley stores must buy mandrakes from Italy and have them shipped to the United Kingdom. Therefore, the magic stores in the UK __________________ the mandrakes from Italy.

• exports

• tariffs

• embargoes

• imports

Which is defined as the voluntary exchange of goods and services among people and countries?

• economics

• GDP

• Goods

• Trade

The nation of Wakanda is considering placing a limit of 1,000 pounds of Columbian coffee per month allowed to be imported because Black Panther wants Wakandans drinking more Wakandan coffee. What trade barrier is this an example of?

• Tariff

• Embargo

• Quota

• Standard

In order to help Tattoine mositure farmers sell more food, some Tattoine people want the government to put a tax on water imported from other countries. What is this an example of?

• quota

• tariff

• embargo

• standard

Corn wont grow at all on Rocky Top, dirts too rocky by far. The state of Indiana is not known for producing quarterbacks. Indiana produces corn for export to Rocky Top. Rocky Top produces Peyton Manning for export to Indiana. Both states profit from this exchange. What is this an example of?

• Monopolies

• Embargoes

• Specialization

• Tariffs

________________________ describes a country focusing on producing one product or type of good or service. An example is Germany’s luxury car industry.

• Specialization

• economics

• agriculture

• barter

In what ways are embargoes different from tariffs and quotas?

• Embargoes are used before any other trade barrier

• Embargoes increase taxes on imports rather than exports

• Embargoes are used only by countries in Europe

• Embargoes completely eliminate trade between countries

Tariffs, quotas, and embargoes are examples of _____________________.

• Free trade

• Trade barriers

• Trade incentives

• Restrictive licenses

What was the original purpose of the European Union?

• Defend Western Europe

• Defeat the Soviet Union

• Eliminate all politics in Europe

• Encourage trade