Economics Quiz

______ is a country's ability to produce a good at a lower opportunity cost than another country can.

• Comparative Advantage

• productive capacity

• tariff

• quota

A ______, or customs duty, is a tax on an imported good.

• tariff
• quota

• trade barrier

• restriction

______ refers to convincing countries not to pass laws that block or limit trade.

• market economy

• free trade

• developing economy

• economic diplomacy

A country has a trade ____ when the value of the products it imports exceeds the value of the products it exports.

• barrier

• deficit

• balance

• surplus

A small percentage of goods produced in the United States are ______, or sold to other countries.

• tariffed

• imported

• exported

• traded

What is a limit placed on the amount of foreign goods imported?

• quota

• tariff

• key trade

• sanction

The WTO is an international organization that ________.

• institutes trade barriers

• sets the exchange rate

• sets discount rate

• oversees trade

The ________ is the difference between the value of a nation's exports and its imports.

• trade surplus

• trade barrier

• balance of trade

• exchange rate

An airline that increases its market by building airplanes for other countries is displaying an example of which reason why nations trade?

• to obtain goods they cannot produce

• to create jobs

• to reflect comparative advantage

• to solve the problem of scarcity

What occurs when we lack the resources to produce the things we want?

• scarcity

• wants

• marginal benefit

• free enterprise