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WorksheetsThe U.S. and the Global Economy
Total questions: 24
Worksheet time: 12mins
Name
Class
Date
1.
What is a big reason why international trade has increased so much in the past 50 years?
a)
improvements in transporation
b)
larger, cheaper goods being traded
c)
tighter airport security
d)
crackdown on piracy in international waters.
2.
Which service would be considered a U.S. export?
a)
a U.S. business traveler stays in a hotel in Australia
b)
a French movie attracts large crowds at U.S. theaters.
c)
a Dutch family hosts a high school student from the U.S.
d)
A German student pays tuition to attend college in the U.S.
3.
Most economists...
a)
support free trade
b)
support import quotas
c)
support trade embargoes
d)
support all trade restrictions
4.
Which of the following represents a trade deficit?
a)
exports equal imports
b)
exports are greater than imports
c)
imports are greater than exports
5.
Which concept explains why a country would both import and export a particular type of good?
a)
comparative advantage
b)
import quota
c)
product differentiation
d)
voluntary restraints
6.
How do economists generally feel about the global economy?
a)
They dislike it because it causes unemployment
b)
They support it because they feel the benefits outweigh the costs
c)
They are indifferent to it because its effects are inconsistent.
d)
They believe it benefits smaller countries more than larger one.
7.
Which has NOT contributed to the rapid increase in global trade?
a)
the decrease in the demand for agricultural goods
b)
the development of more advanced jet planes
c)
the use of satellite systems to communicate with internet and cell phones
d)
the shift of trade to lighter manufactured goods
8.
What does it mean if a country has a trade surplus?
a)
it has a high exchange rate
b)
it has a low exchange rate
c)
its exports are greater than its imports
d)
its imports are greater than it exports
9.
When a country can produce a good or service at a lower opportunity cost than its competitors can
a)
an absolute advantage
b)
a global advantage
c)
an international advantage
d)
a comparative advantage
10.
If you like to buy American made cheese and cheese made in France, we know cheese is
a)
an international product
b)
an inelastic product
c)
a comparative product
d)
a differentiated product
11.
Why purpose do protective tariffs serve?
a)
keep prices of foreign goods low
b)
to help encourage trade between countries
c)
to limit the amount of goods going out of the country
d)
to protect local producers from foreign competitors
12.
Protectionists don't like free trade because it
a)
forces local companies to cut costs or go out of business
b)
results in worse working conditions and lower safety standards
c)
causes too many restrictions on trade with other countries
d)
makes all domestic (made here) goods lower quality compared to foreign goods
13.
When the U.S. dollar is weak, U.S. exports
a)
are more expensive
b)
have higher tariffs
c)
become cheaper
d)
are often banned
14.
Eliminating all trade barriers, helping goods move more freely between countries.
a)
balance of trade
b)
exports
c)
foreign trade
d)
free trade
15.
The value of a nation's exports minus its imports
a)
balance of trade
b)
exports
c)
global economy
d)
imports
16.
trading between the world's counries
a)
free trade
b)
global economy
c)
imports
d)
balance of trade
17.
Trading the currency of one country for that of another.
a)
exports
b)
foreign exchange
c)
protective tariff
d)
balance of trade
18.
a tax on imports
a)
protective tariff
b)
free trade
c)
foreign exchange
d)
global economy
19.
goods and services sold to other countries
a)
imports
b)
exports
c)
balance of trade
d)
foreign exchange
20.
goods and services purchases from other countries
a)
imports
b)
exports
c)
balance of trade
d)
foreign exchange
21.
When the dollar is weak...
a)
exports go up & imports go down
b)
imports go up & exports go down
c)
free trade is more likely
d)
protective tariffs are more likely
22.
Which of the following Americans would most likely oppose free trade?
a)
consumers
b)
economists
c)
factory workers
23.
What is one way NAFTA has affected Americans?
a)
it has increased trade
b)
it has made goods cheaper
c)
it has created temporary job loss
d)
all of these are correct
24.
Import quotas and voluntary export restraints both
a)
allow goods to pass freely across borders
b)
limit the number of goods going into a country
c)
create more jobs in America
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