Economics Quiz

What is international trade?

• Exchange of goods and services between countries

• The movement of goods and services within a city

• Buying and selling goods within a country

• The exchange of goods and services between individuals

Why is international trade important for countries?

• International trade is not important for countries because it leads to dependency on other nations.

• International trade is not important for countries because it promotes inequality and exploitation.

• International trade is not important for countries because it hinders domestic industries and job opportunities.

• International trade is important for countries because it allows them to access a wider range of goods and services, promotes economic growth, creates job opportunities, and fosters international cooperation and peace.

What are the advantages of international trade?

• Increased economic growth, access to a wider range of goods and services, lower prices for consumers, job creation, and improved international relations.

• Decreased economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations.

• No impact on economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations.

• Increased economic growth, limited access to goods and services, higher prices for consumers, job loss, and strained international relations.

What are the disadvantages of international trade?

• Increased competition, loss of domestic jobs, and trade imbalances.

• Decreased economic growth, increased prices, and cultural homogenization

What is a trade deficit?

• A trade deficit is when a country's imports exceed its exports.

• A trade deficit is when a country's exports exceed its imports.

• A trade deficit is when a country has an equal amount of imports and exports.

• A trade deficit is when a country does not engage in any trade activities.

What is a trade surplus?

• A trade surplus is when a country exports more than it imports.

• A trade surplus is when a country does not engage in any trade activities.

• A trade surplus is when a country has an equal amount of imports and exports.

• A trade surplus is when a country imports more than it exports.

What are tariffs?

• Taxes or duties imposed on imported or exported goods by a country's government.

• Penalties for violating traffic laws.

• Fees charged for using public transportation.

• Taxes imposed on goods by private companies.

What is a free trade agreement?

• A free trade agreement is a pact between two or more countries or regions that increases barriers to trade.

• A free trade agreement is a pact between two or more countries or regions that has no impact on trade.

• A free trade agreement is a pact between two or more countries or regions that only applies to certain industries.

• A free trade agreement is a pact between two or more countries or regions that reduces or eliminates barriers to trade.

What is comparative advantage in international trade?

• Ability of a country to produce a good or service at a higher opportunity cost than other countries

• Ability of a country to produce a good or service at a lower opportunity cost than other countries

• Ability of a country to produce a good or service at the same opportunity cost as other countries

• Ability of a country to produce a good or service without considering opportunity cost

What are the main barriers to international trade?

• language barriers

• cultural differences

• currency exchange rates

• tariffs, quotas, trade restrictions, non-tariff barriers