ISS Unit 7 Test 2024

__________ is a country's ability to produce a good at a lower opportunity cost than another country can.

• Comparative Advantage
• Productive Capacity
• Quota
• Tariff

A __________ is a tax on imported goods.

• Quota
• Tariff
• Trade Barrier
• Restriction

__________ refers to countries joining together in a group and deciding not to pass laws that block or limit trade.

• market economy
• free trade
• developing economy
• economic diplomacy

A country has a trade __________ when the value of the products it imports exceeds the value of the products it exports

• barrier
• deficit
• balance
• surplus

A small percentage of goods produced in the United States are __________, or sold to other countries.

• tarriffed
• imported
• exported
• traded

What is a limit placed on the amount of foreign goods imported?

• quota
• tariff
• key trade
• sanction

The WTO is an international organization that...

• institutes trade barriers
• sets the exchange rate
• sets the discount rate
• oversees trade

What occurs when we lack the resources to produce the things we want?

• scarcity
• wants
• marginal benefit
• free enterprise

The __________ cost is what you cannot buy or do when choosing to do one thing rather than another.

• incentive
• marginal
• rational
• opportunity

__________ are rewards offered to try to get people to take certain economic actions.

• profits
• marginal benefits
• incentives
• trade offs