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WorksheetsEconomics Total Recall (International)
Total questions: 13
Worksheet time: 7mins
Name
Class
Date
1.
A protective tariff is intended to protect the
a)
consumer from higher prices on foreign goods.
b)
consumer from higher priced goods produced within the country.
c)
manufacturer from higher prices on materials produced within the country.
d)
manufacturer or farmer from lower priced goods imported into the country.
2.
Coming into effect in 1994, NAFTA encouraged free trade between the United States and which two other countries?
a)
canda and cuba
b)
japan and china
c)
Canada and mexico
d)
panama and brazil
3.
All of these restrict international trade EXCEPT
a)
quotas
b)
subsidies
c)
embargoes
d)
trade deficits
4.
The difference between money paid to, and received from, other nations in trade is the
a)
balance of trade
b)
absolute advantage
c)
balance of payments
d)
comparative advantage
5.
Which statement BEST reflects the difference between tariffs and quotas?
a)
Tariffs raise prices on exports, while quotas set limits on imports.
b)
Tariffs raise prices on imports, while quotas set limits on exports.
c)
Tariffs raise prices on exports, while quotas set limits on exports.
d)
Tariffs raise prices on imports, while quotas set limits on imports.
6.
An exchange rate is used to
a)
promote the argument supporting free trade.
b)
promote the use of subsidies on foreign goods.
c)
determine the price of one country's imports in terms of another country's imports.
d)
determine the price of one country's currency in terms of another country's currency.
7.
The price of one nation's currency in terms of another nation's currency is called
a)
foreign exchange
b)
exchange rate
c)
foreign exchange rate
d)
currency converter
8.
Currently, the foreign exchange rate for all world currencies is
a)
fixed exchange rate, based on the U.S. dollar.
b)
a floating exchange rate, based on the U.S. dollar.
c)
a fixed exchange rate, based on market forces of supply and demand.
d)
a floating exchange rate, based on market forces of supply and demand.
9.
Which relationship BEST illustrates a comparison of absolute advantage and comparative advantage?
a)
A country with an absolute advantage will always have a comparative advantage in producing products.
b)
A country with a comparative advantage can produce a greater output of a products than a country with an absolute advantage.
c)
A country with an absolute advantage can produce a product at a lower opportunity cost than a country with a comparative advantage in producing all products.
d)
A country with a comparative advantage can produce a product at a lower opportunity cost, even if another country has an absolute advantage in the production of all goods.
10.
A trade surplus is generally known as a
a)
positive balance of trade.
b)
negative balance of trade.
c)
positive balance of payments.
d)
negative balance of payments.
11.
What are tariffs?
a)
political boundaries between nations
b)
military blockades of specific countries
c)
disputes between state governments over boundaries
d)
taxes on the import or export of goods from a country
12.
When one country can produce a product more cheaply than another country can, this is called
a)
a tariff.
b)
free trade.
c)
comparative advantage.
d)
absolute advantage
13.
An import quota is a
a)
tax on import quantities above the legal limit.
b)
way to increase tariff revenues for the exporting country.
c)
legal limit on the amount of a good that can be imported into a country.
d)
legal incentive for members of WTO to increase their exports of a good or service.
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