CMS: Review for Economics Part II

Which three are examples of trade barriers?

• Tariff

• Quota

• Embargo

• Exchange rate

A country notices its GDP steadily increasing over several years. What does this MOST likely shows?

• The economy is unstable

• The economy has no change

• The economy is growing

• The economy is shrinking

Why are exchange rates important in world trade?
A. They measure the distance between trading nations
B. They let countries compare the value of different currencies
C. They set rules for free trade agreements
D. They decide the amount of imports allowed

• They let countries compare the value of different currencies

• They measure the distance between trading nations

• They set rules for free trade agreements

• They decide the numberof imports allowed

If a government places a ban (stop) on trading oil with another country, what is this called?
A. Tariff
B. Embargo
C. Quota
D. Surplus

• Tariff

• Quota

• Embargo

• Surplus

Trinidad's high literacy rate contributes to its economy by…

• Increasing unemployment levels

• Providing a skilled workforce that raises the standard of living

• Limiting the number of immigrants allowed into the country

• Lowering the wages of most workers

Which of the following BEST defines a tariff?

• A tax placed on imports from other countries

• A ban on selling goods to other nations

• A rule that allows free trade across borders

• A type of currency used between countries

How does specialization help nations improve their economies?

• It allows countries to trade for goods they do not produce

• It forces everyone to work longer hours

• It decreases the amount of training workers need

• It makes resources evenly spread across nations

If a country spends more money on education and job training, what is the MOST likely result?

• GDP will decrease

• GDP will increase

• Natural resources will grow

• Entrepreneurs will disappear

What action BEST represents an investment in human capital?

• A business raising prices on exports

• A nation lowering property taxes

• A company providing training to workers

• A factory buying new machines

Which person is MOST likely an entrepreneur?

• A store owner who starts a new bakery

• A teacher who works in a school

• A mayor leading a city government

• A tourist visiting another country