Trade and Economics Quiz

A trade barrier is meant to

• encourage the flow of trade

• block or slow down trade

• make people obey the government

• prevent stealing

Answer explanation

A trade barrier is designed to block or slow down trade between countries, often to protect domestic industries from foreign competition. Therefore, the correct answer is 'block or slow down trade'.

If a country limits the amount of an imported good, they are using a(n)

• embargo

• tariff

• quota

• game strategy

Answer explanation

A quota is a limit on the quantity of a good that can be imported, making it the correct answer. An embargo prohibits trade, a tariff is a tax on imports, and 'game strategy' is not relevant in this context.

When a country refuses to trade with others it is participating in a trade ______

• tariff

• embargo

• quota

• walkout

Answer explanation

An embargo is a government order that restricts or prohibits trade with specific countries. When a country refuses to trade with others, it is effectively participating in an embargo, making it the correct choice.

A tariff is a ______

• tax placed on imported goods

• a limit placed on imported goods

• stop of all trade

• capital good

Answer explanation

A tariff is specifically defined as a tax placed on imported goods, making it a tool for governments to regulate trade and generate revenue. The other options do not accurately describe what a tariff is.

Which of the following is NOT human capital?

• Education

• Training

• Skills

• Computers

Answer explanation

Computers are physical assets, not human capital. Human capital refers to the skills, education, and training that individuals possess, which contribute to their economic value.

Focusing on producing certain goods based on their resources is called ___________?

• Trade Barrier

• Tariff

• Specialization

• Human Capital

Answer explanation

Focusing on producing certain goods based on their resources is known as specialization. It allows countries or businesses to become more efficient by concentrating on specific products they can produce best.

This shows where a country falls between command and market economies.

• Capital Goods

• Human Capital

• Economic Continuum

• Trade Barriers

Answer explanation

The Economic Continuum illustrates the spectrum between command and market economies, showing where a country fits based on its economic practices. This makes it the correct choice for the question.

Which is the only trade barrier that would create revenue (money coming in) for a country?

• Quota

• Tariff

• Embargo

• Boycott

Answer explanation

A tariff is a tax imposed on imported goods, generating revenue for the government. In contrast, quotas limit quantity, while embargoes and boycotts restrict trade without generating income.

Which one is not an entrepreneur?

• Owner of a bookstore

• Owner of a restaurant

• A blogger

• A teacher

Answer explanation

A teacher primarily educates students and does not typically take on the risks or responsibilities associated with starting and running a business, unlike the other options which involve entrepreneurial activities.

_________ is the amount of people in a country who can read and write.

• Standard of Living

• Gross Domestic Product

• Literacy Rate

• GDP per Capital

Answer explanation

The correct answer is 'Literacy Rate' as it specifically measures the percentage of people in a country who can read and write, distinguishing it from other economic indicators like GDP.