Chapter 3

What are interest rates?

• The cost of using someone else’s money

• The profit made from investments

• The amount of money saved in a bank

• The value of a country's currency

The accepted behaviors, customs, and values of a society are referred to as:

• Economy

• Culture

• Politics

• Infrastructure

A nation’s transportation, communication, and utility systems are referred to as its:

• Economy

• Culture

• Infrastructure

• Government

A trade barrier is:

• A free trade agreement

• A restriction to free trade

• An economic partnership

• A type of currency exchange

When a government completely stops the import or export of a product, it is called a(n):

• Tariff

• Quota

• Embargo

• Subsidy

A company that does business in several countries is known as a:

• Domestic company

• Multinational company

• Local company

• Regional company

The right to use a company name or business process in a specific way is called:

• Licensing

• Franchising

• Patenting

• Branding

The total value of all goods and services produced in a country in a given year is known as:

• Gross Domestic Product (GDP)

• Net National Product (NNP)

• Gross National Income (GNI)

• Consumer Price Index (CPI)

The measure of how much one currency is worth in relation to another currency is called:

• Exchange rate

• Interest rate

• Inflation rate

• Deflation rate

A situation where a country can produce a good at a lower opportunity cost than another country is known as:

• Absolute advantage

• Comparative advantage

• Competitive advantage

• Strategic advantage