Apex Economics Unit 4 Test Review

New shipping technologies and easier trade between countries is a result of

• trade barriers

• globalization

• trade blocs

• industrialization

Which of the following is a drawback of globalization?

• Decreased pollution

• Poor workers don't always see benefits

• Less competition

• Business owners see increased profits

When the price of goods continues to rise each year, the country is experiencing

• inflation

• labor shortages

• increased social programs

• trade bloc side effects

At the end of World War II, many countries had currency that was worthless. This resulted in high levels of

• international trade

• market capital

• competition

• inflation

One major benefit to trading is that countries are able to gain

• access to natural resources

• more valuable currency

• workers from other places

• new businesses

Increased trade between nations leads to countries focusing on a few specific products. This is

• globalization

• specialization

• deflation

• trade deficits

The United States produces more cars than its trading partners. The US has

• absolute advantage

• trade surplus

• trade deficit

• comparative advantage

A country can produce clothing at a lower opportunity cost than its trading partners. When trading, that country would have

• an absolute advantage

• a comparative advantage

• trade deficit

• trade surplus

When a country exports more than it imports, it has a ___________________.

• trade surplus

• trade deficit

A trade deficit occurs when a country exports _________ than it imports.

• more

• less

• the same