Economics Vocabulary Quiz #4

What is a tariff?

• A tax on imports or exports

• A limit on the quantity of goods

• A government ban on trade

• A financial aid to businesses

What does a quota refer to in trade?

• A tax on goods

• A limit on the quantity of goods

• A government ban on trade

• A financial aid to businesses

What is an embargo?

• A tax on imports or exports

• A limit on the quantity of goods

• A government ban on trade

• A financial aid to businesses

What is a subsidy?

• A tax on imports or exports

• A limit on the quantity of goods

• A government ban on trade

• A financial aid to businesses

What does inflation refer to?

• A decrease in prices

• An increase in prices and it decreases the value of the dollar.

• A stable price level

• A government-imposed price control

What is debt?

• Money owed by one party to another

• Money saved for future use

• Money invested in stocks

• Money given as a gift

What is a deficit?

• Excess of income over expenditure

• Spending more than you make.

• Equal income and expenditure

• No income or expenditure

What is interest?

• A fee paid for borrowing money

• A reward for saving money

• A penalty for late payment

• A tax on income

What is a budget?

• A plan for saving money

• A plan for spending money

• A plan for investing money

• A plan for borrowing money

What is a savings account?

• An account for daily transactions

• An account for saving money

• An account for borrowing money

• An account for investing in stocks