Economics: Unit 4 Review and Study Guide

What does it mean when an economists state that a country specializes in producing certain products?

• They make every product hoping people would have what they need.

• They only make certain products rather then everything they need.

• They only make popular products

• They make products based on the growing trends

What are exports?

• Get goods or services from another country for sale.

• Only get foreign goods for domestic sale

• Suppling domestic goods for domestic sales

• Send goods or services to another country for sale.

What are imports?

• Bring goods or services into a country from abroad for sale.

• Send goods or services to another country for sale.

• Bring goods ONLY into a country from another country.

• Send services ONLY to another country from another country.

What are net exports?

• Measures of a nation's total export ONLY.

• Measures of a nation’s total trade.

• Measures of a nation's total imports ONLY.

• Measures of a nation's total foreign purchases.

What is balance of trade?

• When two country's negotiate their products.

• The difference in production of imports.

• The difference in value between a country’s imports and exports.

• When a country is more dominant in trade than another.

What is a trade surplus?

• The amount by which the cost of a country's imports cost to import.

• The amount by which the value of a country's exports exceeds the cost of exports.

• The amount by which the cost is compared to other country's prices.

• The amount by which the value of a country's exports exceeds the cost of its imports.

What is a trade deficit?

• The amount by which the cost of a country’s imports exceeds the value of it’s exports.

• The amount by which the cost of a country's exports exceeds the value of it's imports.

• The amount by which a country cost it's foreign traders.

• The amount by which a country exceeds its costs.

What is balance of payments?

• A country's total value based of trade within a period.

• The cost based value of country's military strength.

• The difference in total value between payments into and out of a country over a period of time.

• A country has mega scales that are used to literally measure the balance of payments.

What is the difference between balance of trade and balance of payments?

• Balance of trade records a country's imports and exports of goods over the world while the balance of payment records all the transactions of a country's economy with other countries.

• Balance of trade is measuring the cost of trade and Balance of payments is measuring the cost of how much it cost.

• The balance of trade and balance of payment are the same.

• None of the above.

What is a credit?

• The ability of a consumer getting the product after payment.

• The ability of the customer to make monthly payments until paid off and the product is delivered.

• The ability of a consumer to receive goods based on their credit history.

• The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.