What is the term for an economy in which goods and services are freely traded with other economies?

• Isolated economy

• Closed economy

• Mixed economy

• Open economy

What are imports in the context of international trade?

• Tax charged on imports

• Domestic products

• Goods and services bought from other countries

• Goods and services sold to other countries

What is the difference between visible trade and invisible trade?

• Visible trade involves goods, while invisible trade involves services

• Visible trade involves services, while invisible trade involves goods

• Both involve goods

• Both involve services

What is the balance of trade?

• Difference between visible imports and visible exports

• Tax charged on imports

• Limit on the quantity of goods produced

• Difference between total imports and total exports

When there is a surplus balance of trade, what does it mean?

• Visible exports are greater than visible imports

• Visible imports are greater than visible exports

• Total exports are greater than total imports

• Total imports are greater than total exports

What is the balance of payments?

• Difference between total imports and total exports

• Difference between visible imports and visible exports

• Difference between visible imports and visible exports

• Difference between total imports and total exports

What is a tariff in the context of international trade?

• Tax charged on exports

• Tax charged on imports

• Limit on the quantity of goods produced

• Ban on the trade of certain goods

What is a quota?

• Ban on the trade of certain goods

• Limit on the quantity of goods produced

• Tax charged on imports

• Price support given by the government to businesses

What is an embargo?

• Tax charged on imports

• Limit on the quantity of goods produced

• Ban on the trade of certain goods

• Price support given by the government to businesses

What is a subsidy?

• Tax charged on imports

• Ban on the trade of certain goods

• Price support given by the government to businesses

• Limit on the quantity of goods produced