Civics Chapter 23 Lesson 1 Quiz

What is a "tariff"?

• A tax on an imported good

• A limit on foreign goods

• A trade agreement

• A type of export

What is an "exchange rate"?

• A tax on exports

• The value of a nation's money compared to other nations' money

• A limit on imported goods

• A type of trade agreement

What does "quota" mean in international trade?

• A tax on imported goods

• A limit on the amount of foreign goods imported

• A type of export

• A trade agreement

What is "comparative advantage"?

• The ability to produce something at a lower opportunity cost

• The imposition of tariffs

• The increase of quotas

• The protection of domestic goods

Why does China have a comparative advantage in making goods that need lots of labor?

• High technology

• Low labor costs

• Abundant natural resources

• Advanced education system

What is the danger of a single resource economy?

• High inflation

• Economic instability if the product price falls

• Increased competition

• Overproduction

What are the two most common kinds of trade barriers?

• Tariffs and subsidies

• Quotas and subsidies

• Tariffs and quotas

• Free trade and tariffs

What is a tariff?

• A limit on the amount of an item that can be imported

• A tax on exports

• A tax on imports

• A subsidy for domestic producers

What is the main benefit of the European Union (EU) using the same currency?

• It increases the value of the euro.

• It makes trade easier.

• It reduces the number of member nations.

• It limits travel among EU nations.

How can heavy imports affect a nation's currency?

• Increase its value

• Decrease its value

• Have no effect

• Double its value