Balance of Trade Implications

Balance of Trade Implications

Assessment

Interactive Video

Economics

9th - 10th Grade

Hard

Created by

Patricia Brown

FREE Resource

The video tutorial explains the concept of balance of trade, which records the volume of goods and services imported and exported by a country. It discusses the implications of a negative balance, where imports exceed exports, leading to financial reserve depletion, and a positive balance, where exports exceed imports, generating revenue. The tutorial emphasizes the importance of understanding these concepts for economic studies and examinations.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the topic of Balance of Trade considered important in economics?

It is used to calculate the population growth rate.

It is a measure of a country's military strength.

It helps in understanding the cultural exchange between countries.

It is crucial for determining a country's economic health.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the Balance of Trade primarily record?

The number of tourists visiting a country.

The volume of goods and services imported and exported.

The amount of foreign aid received.

The number of international conferences held.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens when a country imports more than it exports?

The country's population decreases.

The country's financial reserves increase.

The country's balance of trade becomes negative.

The country's cultural influence grows.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In a negative Balance of Trade scenario, what is the financial implication for a country?

The country gains more revenue than it spends.

The country spends more on imports than it earns from exports.

The country becomes a global leader in trade.

The country experiences a population boom.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a positive Balance of Trade?

When a country's imports are equal to its exports.

When a country's imports exceed its exports.

When a country has no trade with other countries.

When a country's exports exceed its imports.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does a positive Balance of Trade affect a country's economy?

It results in increased revenue from exports.

It leads to a reduction in international trade.

It leads to a depletion of financial reserves.

It causes a decrease in the country's GDP.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the consequence of a negative Balance of Trade on a country's financial reserves?

The reserves are exhausted over time.

The reserves increase significantly.

The reserves remain unaffected.

The reserves are used for military expansion.

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