EPF Module 7 Content

What is a trade deficit?

• When a country exports more than it imports

• When a country imports more than it exports

• When a country has equal exports and imports

• When a country stops trading altogether.

How does international trade affect prices?

• Increases prices

• Decreases prices

• Keeps prices the same

• Eliminates prices

Fill in the blank: Most diamond mines are located in ______.

• A) Asia

• B) Europe

• C) Africa

• D) America

What is one of the main benefits of international trade?

• It limits access to resources

• It creates interdependence

• It reduces production

• It increases conflict

Interdependence between nations can reduce the likelihood of what?

• War

• Trade

• Production

• Isolation

Improving productivity in one country's market can benefit ______.

• only that country

• the rest of the world

• no one

• only neighboring countries

A recession in a trading partner's economy can lead to ______ in the U.S. economy.

• expansion

• isolation

• conflict

• reduction