Unit 6 - International Trade, Economics Systems

Front

Economist believe which of the following are benefits of international trade:
- there can be increased consumption for all.
- global production will be increased.
- world resources will be used more efficiently.
- all of these are true.

Back

all of these are true.

Front

Comparative advantage explains why a nation will benefit from trade when: it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

Back

it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

Front

A country that can produce a good using fewer resources than another country has a(n):

Back

absolute advantage.

Front

Embargos:

Back

ban trade with other countries

Front

A tariff can be defined as a:

Back

tax on imports.

Front

The principal objective of WTO is to:

Back

reduce the level of all tariffs and encourage trade

Front

A restriction on the quantity of a good that can be imported into a country is a(n):

Back

quota.

Front

NAFTA is a trade agreement between which of the following countries? the United States, Cuba, and Brazil. the United States, Canada, and Mexico. the United States, Puerto Rico, and Cuba. Brazil, Bolivia, Peru, and Columbia.

Back

the United States, Canada, and Mexico.

Front

The account which records a nation's foreign economic transactions is called the:

Back

Balance of Payments.

Front

An exchange rate is the number of units of:

Back

a nation's money that is equal to one unit of another nation's money.