Trade and Economics Quiz

What are the two types of goods mentioned in the text?

• Manufactured items and agricultural commodities

• Digital products and services

• Luxury items and basic necessities

• Raw materials and finished products

What does the term 'services' refer to in the context of trade?

• Tangible goods like electronics

• Intangible goods such as advertising and telecommunication

• Agricultural products

• Manufactured items

What is the system of worldwide trade described as in the text?

• A simple exchange between two countries

• An intricate web with lengthy supply chains

• A local market system

• A barter system

Why can't countries just make their own products and provide jobs domestically according to the text?

• Because it is more expensive

• Because of the complexity of the trade network

• Because of a lack of resources

• Because of government regulations

What idea did classical economists champion in the late eighteenth century?

• Self-sufficiency

• Comparative advantage

• Isolationism

• Protectionism

What is the term used to describe when countries focus on making things they are good at and import the rest?

• Mercantilism

• Specialization

• Protectionism

• Isolationism

What metric is used to measure the productivity of countries and economies?

• Gross Domestic Product (GDP)

• Human Development Index (HDI)

• Consumer Price Index (CPI)

• Purchasing Power Parity (PPP)

What happens if a country can't sell a high-quality product at a reasonable price point?

• It will succeed

• It will become uncompetitive

• It will dominate the market

• It will increase production

What was the purpose of the North American Free Trade Agreement (NAFTA) signed in 1994?

• To reduce military spending

• To facilitate more trade among the United States, Mexico, and Canada

• To create a single currency for North America

• To establish a common education system

What has international trade created according to the text?

• A disconnected world economy

• Fewer job opportunities

• A tightly interconnected world economy

• Less access to goods and services