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Worksheetsglobal trade x
Total questions: 25
Worksheet time: 52mins
Name
Class
Date
1.
An import quota is meant to ______ the number of a particular good brought into the country.
a)
affect
b)
benefit
c)
restrict
d)
increase
2.
One _____ of free trade is that competition usually results in better products at lower prices.
a)
positive
b)
negative
3.
If a country can produce a certain good at a lower opportunity cost than another country it has the...
a)
absolute advantage
b)
competition
c)
specialization
d)
comparative advantage
4.
Which of the following are benefits of international trade?
a)
acquiring goods that you do not produce yourself
b)
the ability to sell your goods to others for a profit
c)
the ability to specialize production of certain goods in your country
d)
all of the above are benefits
5.
Nations with low industrial development and low standards of living are known as:
a)
developed nations
b)
3rd world nations
c)
developing nations
d)
western nations
6.
Countries get__________from the environment.
a)
natural resources
b)
manufactured goods
7.
_____________ are produced in factories.
a)
natural resources
b)
manufactured goods
8.
Why do countries trade with each other?
a)
to stay friendly
b)
to get things they want and need
c)
to pay for transportation
d)
to make other countries rich
9.
Why does the United States sell wheat and buy bananas?
a)
The United States grows a lot of wheat but not many bananas
b)
People like bananas more than they like wheat
c)
Wheat costs more than bananas
d)
Bananas cost more that wheat
10.
Global trade often takes jobs away from richer countries. This is because poorer countries have
a)
higher prices
b)
better quality
c)
lower pay for workers
d)
more natural resources
11.
What are exports?
a)
Goods and services produced in one country and sold to other countries
b)
Goods and services purchased from other countries
c)
producing a few special goods and services
12.
What are imports?
a)
Goods and services produced in one country and sold to other countries
b)
Goods and services purchased from other countries
c)
producing a few special goods and services
13.
What is specialization?
a)
Goods and services produced in one country and sold to other countries
b)
Goods and services purchased from other countries
c)
producing a few special goods and services
14.
What is the opportunity cost of a decision?
a)
the series of alternative decisions that could have been made
b)
the best possible way the question could have been decided
c)
the different ways that a different person might have made the decision
d)
the most desirable alternative given up for the decision
15.
What determines the price and the quantity produced of most goods?
a)
the consumer’s perception of necessity
b)
the interaction of supply and demand
c)
the availability of substitutes for the goods
d)
the quality of the goods that are produced
16.
What is a basic principle of the law of demand?
a)
The higher the price, the more people will want the good.
b)
Everyone has a limited income that they will spend.
c)
When a good’s price is lower, people will buy more of it.
d)
Services are of interest in the same way that goods are.
17.
A(n) ________ is placed on imported goods to encourage citizens to buy domestically.
a)
Physical trade barrier
b)
tariff
c)
quota
d)
embargo
18.
Prohibits or stops all trade in a specific country.
a)
Quota
b)
Tariff
c)
Embargo
19.
A limit on the amount of goods that can be imported.
a)
Quota
b)
Tariff
c)
Embargo
20.
A tax on imported goods.
a)
Quota
b)
Tariff
c)
Embargo
21.
focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.
a)
Interdependence
b)
Specialization
c)
Scarcity
22.
Lack of resources or not having enough of what you need.
a)
Interdependence
b)
Scarcity
c)
Globalization
23.
Term which refers to the products of services originating in one’s own country; it is the antonym of foreign.
a)
Foreign
b)
Domestic
c)
International
24.
Refusal to purchase a good/service from a specific company or country.
a)
Embargo
b)
Boycott
25.
The price of one’s country’s currency compared to another country’s currency.
a)
Currency exchange
b)
Embargo
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