International Trade and Economics Quiz

What is an open economy?

• An economy with a fixed exchange rate

• An economy that only trades domestically

• An economy where goods and services are freely traded with other economies

• An economy with no government intervention

What are imports?

• Goods and services sold to other countries

• Goods produced domestically

• Services provided within a country

• Goods and services bought from other countries

What is the balance of trade?

• The difference between total exports and total imports

• The total value of all imports

• The difference between visible exports and visible imports

• The total value of all exports

What is a tariff?

• A tax charged on exports

• A subsidy given to domestic producers

• A tax charged on imports to make them more expensive

• A limit on the quantity of goods produced

What is a surplus balance of trade?

• When total exports are equal to total imports

• When visible imports are greater than visible exports

• When visible exports are greater than visible imports

• When total imports are greater than total exports

What is the balance of payments?

• The total value of all invisible trade

• The difference between the value of a country's total imports and total exports

• The total value of all visible trade

• The difference between visible exports and visible imports

What is a quota?

• A tax on imports

• A form of price support given by the government

• A limit on the quantity of goods produced

• A ban on the trade of certain goods

What is an embargo?

• A subsidy for domestic producers

• A ban on the trade of certain goods

• A limit on the quantity of goods produced

• A tax on exports

What is a subsidy?

• A tax on imports

• A limit on the quantity of goods produced

• A ban on the trade of certain goods

• A form of price support given by the government to businesses

What is international trade?

• The exchange of goods and services within a country

• The regulation of trade by the government

• The exchange of goods and services between different countries

• The production of goods for domestic use