Economics Unit 6 Lesson 1 Vocab

What is the term for the official lowering of the value of a country's currency in relation to other currencies?

• Appreciation

• Devaluation

• Depreciation

• Protectionism

Which term refers to goods and services sold to other countries?

• Imports

• Exports

• Imports Quota

• Trade Deficit

What is a protective tariff?

• A tax on goods produced domestically

• A tax on imported goods to protect domestic industries

• A limit on the number of goods exported

• A ban on trade with another country

Which of the following best describes a trade surplus?

• Imports are greater than exports

• Exports are greater than imports

• Imports and exports are equal

• No trade occurs

What is the balance of trade?

• The difference between a country's imports and exports

• The value of a country's currency

• The amount of foreign investment in a country

• The total amount of goods produced domestically

Which term refers to the buying and selling of currencies?

• Foreign direct investment

• Foreign exchange market

• Free trade

• Customs

What is an import quota?

• A tax on imports

• A limit on the amount of a product that can be imported

• A ban on imports

• A subsidy for exports

Which term describes a currency that is gaining value compared to others?

• Depreciation

• Devaluation

• Appreciation

• Weak dollar

What is protectionism?

• Encouraging free trade

• Restricting imports to protect domestic industries

• Allowing all goods to enter a country freely

• Investing in foreign countries

Which of the following is an example of a non-tariff barrier?

• Import quota

• Export

• Floating exchange rate

• Appreciation