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WorksheetsInternational Trade Review
Total questions: 15
Worksheet time: 8mins
What is the result of nations specializing in the production of goods?
decreasing prices
economic efficiency
self-sufficiency
incentive to trade
A nation can have an absolute advantage without having a comparative advantage in production.
True
False
What is the difference between nations exports and imports?
Balance of Trade
Real GDP
Comparative Advantage
Absolute Advantage
Measures the price of one nation's currency in terms of another nation's currency
interest rates
exchange rates
discount rates
inflation rates
Who benefits from the depreciation of the Japanese yen relative to the Euro?
European consumers of European Goods
Japanese consumers of Japanese Goods
European consumers of Japanese Goods
Which is NOT an example of a trade barrier?
Tariff
NAFTA
Embargo
Quota
What argument for protection believes that new or emerging industries should be protected.
National Defense
Protecting domestic jobs
Infant Industry
Keeping money at Home
When the government places a tax on an imported good to protect a domestic good.
Protective tariff
Subsidy
Comparative Advantage
Quota
Which is NOT a benefit to open trade?
lower prices
more consumer choice
increased tariffs
more markets for business
when the dollar strengthens it pushes the balance of trade toward a
Surplus
Shortage
deficit
equilibrium
Which is NOT a regional trade agreement
OPEC
NAFTA
EU
ASEAN
What is the key to trade?
Self-Sufficiency
Specialization
Technology
Wealth
Who supports the need to protect domestic industries?
Free Traders
Protectionists
The Fed
Consumers
The value of the dollar to fall in foreign exchange markets is the effect of
Reserve requirements
Trade surplus
Trade deficit
Aggregate Supply
What cost determines if countries trade or not
Exchange Cost
Comparative Cost
Inflation Cost
Opportunity Cost
