Unit 6 Economic Growth and Trade Barriers Review

Which factor of production MOST DIRECTLY influences economic growth by encouraging the creation of new businesses?

• investment in capital resources

• investment in entrepreneurship

• investment in natural resources

• adopting a common currency

Based on the table of exports and imports for China, India, and Japan, which country would be the BEST trading partner for all three countries in the table?

• a country with a high demand for oil

• a country that specializes in producing oil

• a country with a high demand for automobiles

• a country that specializes in producing automobiles

A system for exchanging currencies is necessary for

• international trade to occur.

• entrepreneurs to earn profits.

• countries to become self-sufficient.

• individuals to manage their income.

Why do businesses invest in capital goods?

• to improve productive efficiency

• to improve their employees' skills

• to encourage entrepreneurship

• to encourage competition

The literacy rate in Japan is roughly 99%, while India's rate of literacy is 71.2%. What conclusion can be drawn based on this information?

• Japan's government is less active in the economy.

• India lacks access to natural resources.

• The Japanese economy is less efficient.

• The average standard of living is lower in India.

What purpose do exchange rates serve?

• Exchange rates calculate the standard of living in a country.

• Exchange rates calculate the rate of unemployment in a country.

• Exchange rates calculate the value of one country's currency in terms of another.

• Exchange rates calculate the average level of income workers in a country receive.

Which situation involves an embargo?

• China suspends all trade with North Korea.

• Japan raises export taxes on automobiles.

• North Korea limits the amount of coal it will export.

• China raises import taxes on Japanese automobiles.

Which situation involves a quota?

• Japan raises export taxes on automobiles.

• South Korea suspends all trade with China.

• North Korea bans its businesses from exporting any goods.

• Japan limits the amount of computers imported from China.

Both tariffs and quotas are used to

• lower prices for consumers

• increase the volume of foreign trade

• protect domestic industries

• improve the quality of goods available

Which country's economic policies limit entrepreneurship the MOST?

• China

• Japan

• North Korea

• South Korea