Economic Concepts Quiz

Exports minus imports or how many goods a country exports versus imports

• Balance of Trade

• Quotas

• Subsidy

• Exports

Limit of the amount of a good that can be imported

• Exports

• Quota

• Subsidy

• Appreciation

An increase in the value of a currency

• Appreciation

• Subsidy

• Depreciation

• Quota

Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the government

• Protectionism

• Balance of trade

• Exchange rate

• Subsidy

Measure the price of one nation’s currency in terms of another nation’s currency

• balance of trade

• exchange rate

• appreciation

• depreciation

When a nation imports more than it exports, economists say it has which of the following?

• A trade deficit

• A balance of trade

• A trade surplus

• A national difference

What happens when a nation’s currency depreciates?

• Nothing happens to the trade balance

• It halts all trade

• Its products become cheaper to other nations and exports may increases

• Its products become more expensive to other nations

The US bans beef imports from Canada after a Mad Cow Disease outbreak there. This is an example of which type of barrier to trade?

• Tariff

• Standards

• Quota

• Subsidy

What is an official ban on trade or other commercial activity with a particular country?

• Product standard

• Embargo

• Tariff

• Quota

Which of the following is NOT an argument in favor of protectionism?

• Protectionism promotes industries that are essential to national security

• Protectionism safeguards workers' jobs

• Protectionism makes domestic firms more competitive in the long run

• Protectionism shields infant industries from competition