Principles 1A Unit 6 Quiz

John works as a website designer and for a fee will perform tasks that help clients create or redesign their websites. In other words, John is providing what for each client?

• a deficit

• an export

• an import

• a service

What country holds the comparative advantage over the United States when it comes to creating labor-intensive products such as clothing, cell phones, and other products that require hand assembly thanks to the abundance of relatively low-cost, low-wage labor available?

• Switzerland

• China

• Great Britain

• Japan

What 19^th-century English economist proposed that countries would become better trading partners and support a wealthier population if they exported what they could produce at a competitive cost and import what they couldn’t?

• David Ricardo

• Frank Geller

• Joey Bassett

• Johan Palmstruch

Goods and services manufactured in one country and sold in another are best referred to as _____ in the country of manufacture.

• deficits

• services

• imports

• exports

Where can a country turn to formally complain about another nation’s trade policies and practices and work toward resolution?

• INTERPOL

• World Trade Organization

• United Nations

• International Red Cross

Due to very affordable prices at the grocery store, combined with an increasingly diverse population and a changing American palate, what happened to the demand for limes in the 1980s?

• It remained the same.

• It declined rapidly.

• It grew steadily.

• It declined slowly.

In April 2018, Ford Motor Company made a decision about their opportunity costs moving forward and announced they will focus future production on SUVs, pickup trucks, and commercial vehicles rather than passenger cars. This decision was driven by a desire to make the company more profitable in light of:

• falling sales revenue in their automobile line.

• growing sales revenue in their automobile line.

• the environmental benefit of SUVs.

• the profitability of selling more pickup trucks.

How do we refer to the physical limit of raw materials, equipment, and labor needed to produce a limited number of products?

• resource loss

• scarce resources

• limited product

• wants and needs

What term best refers to the increasing integration of trade, information, cross-border investments, language, and culture?

• deficit

• domestic trade

• globalization

• protectionism

What happened in 1992 that destroyed most of the richest lime-producing groves in the nation?

• Cyclone Tyrone

• economic decline

• Hurricane Andrew

• stock market crash