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SSEIN1-3 International Econ Review

Total questions: 30

Worksheet time: 26mins

Name
Class
Date
1.
The ability to produce something using fewer resources than other producers is called having the...
a)
Absolute Advantage
b)
Comparative Advantage
c)
Better Advantage
d)
Competitive Advantage
2.
If Country A can produce coffee beans at a lower opportunity cost than Country B, then Country A has a(n) ____________________ in the production of coffee beans
a)
Absolute Advantage
b)
Comparative Advantage
3.
Only producing certain goods instead of everything you need is known as
a)
importing
b)
specialization
c)
balance of trade
d)
absolute advantage
4.
Goods or services that a country buys from other nations.
a)
Duty
b)
Tariff
c)
Export
d)
Import
5.
When a nation imports more than they export, that nation has a
a)
Free trade agreement
b)
Trade surplus
c)
Trade deficit
d)
Trade free economic system
6.
Which of the following is not a benefit of trade between nations?
a)
More stuff
b)
Better stuff
c)
cheaper stuff
d)
similar stuff
7.

How would someone who wanted to see all trade barriers removed have felt about NAFTA?

a)

They would have opposed it on the grounds that it would cost too many US jobs

b)

They would have supported it because it called for subsidies

c)

They would have opposed it on the grounds that it made tariffs too high

d)

They would have supported it for establishing free trade

8.

Taxes imposes on imports are called

a)

Subsideis

b)

Tariffs

c)

Embargoes

d)

Standards

9.

Which of the following parties would be MOST LIKELY to favor US Tariffs?

a)

Producers of exported US Products

b)

US consumers

c)

US Labor Unions

d)

Foreign Producers of US Imports

10.

The international community has just discovered that the leaders of Country X are executing large numbers of citizens who it accuses of opposing the government. In an effort to put economic pressure on Country X to stop these mass murders, the international community refuses to ship food and military weapons to the country, while refusing to buy Country X's products. As a result, Country X ceases its brutal actions and asks other nations to resume trade relations. Country X has responded to

a)

Tariffs

b)

An embargo

c)

International STandards

d)

International Subsidies

11.

A country might place a limit or __________ on another country to weaken their economy.

a)

Embargo

b)

Tariff

c)

Quota

d)

Standard

12.
In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of a
a)
Tariff
b)
Market
c)
Embargo
d)
Quota
13.
True or False: A trade barrier is something that blocks or hinders trade from happening?
a)
True
b)
False
14.
True or False an embargo is meant to increase the amount of trade between two countries?
a)
True 
b)
False
15.
Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the federal government. What is this called?
a)
Balance of trade
b)
protectionism
c)
exchange rate
d)
subsidy
16.

What does EU stand for?

a)

Everyone United

b)

European Union

c)

Equal United

d)

European University

17.

What does NAFTA mean?

a)

North American Federation of Team Athletes

b)

North American Federation of Trade

c)

New Americans Feel Threatened by Allies

d)

North American Free Trade Agreement

18.

Which One Of These Is An Argument Against Free Trade

a)

Protecting Infant Industries

b)

Protecting National Security

c)

Protecting Domestic Employment

d)

Protecting The Environment In Developing Countries

19.

What does it mean to protect infant industries?

a)

To make sure that well established corporations get a chance in the market.

b)

To make sure that new industries get a chance to compete in the market both nationally and internationally.

c)

To make sure that the national security of the USA is protected.

d)

To make sure that the environment of the USA is protected from development in perpetuity.

20.

What does it mean to protect national security?

a)

The argument supports the use of trade barriers when a new industry is in the early stages of development.

b)

The argument of maintaining industries critical to the country’s even when the industry cannot efficiently compete at the internationally.

c)

The argument of seeking to protect workers of a country from becoming unemployed due to competition from workers in developing countries.

d)

The argument that restrictions on trade with countries that have lax environmental standards.

21.

What Does It Mean To Protect Domestic Employment?

a)

The argument supports restrictions on trade with countries that have lax environmental standards.

b)

The argument seeking to protect workers of a country from becoming unemployed due to competition from workers in developing countries.

c)

The argument that supports the use of trade barriers when a new industry is in the early stages of development.

d)

The argument for maintaining industries critical to the country’s national security even when the industry cannot efficiently compete

22.

What type of advantage shows who can make the most item?

a)

absolute advantage

b)

comparative advantage

23.
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes. 
Which country has the absolute advantage in producing airplanes? 
a)
Japan
b)
US
24.

The next best alternative.

a)

Opportunity Cost

b)

Trade Surplus

c)

Trade deficit

d)

Comparative advantage

25.

A combination of things that limit the flow of goods, services, and productive resources between countries

a)

Trade barriers

b)

Trade Surplus

c)

Trade deficit

d)

Balance of trade

26.

requirements a good must meet before it can enter the country as an import.

a)

Free Trade

b)

Standard

c)

Subsidy

d)

National Security

27.

An argument that supports the use of trade barriers when a new industry is in the early stages of development.

a)

Free Trade

b)

Infant Industries

c)

National Security

d)

Balance of Trade

28.

An argument that cites the importance of maintaining industries critical to the country even when the industry cannot efficiently compete at the international level.

a)

Domestic Employment

b)

Infant Industries

c)

Free Trade

d)

National Security

29.

The exchange rate is $1 USD = $0.75 CAD. An American tourist in Winnipeg wants to buy a jar of maple syrup for $1.50 CAD. How many US dollars will it cost?

a)

$1.50 USD

b)

$2.00 USD

c)

$3.00 USD

d)

$0.75 USD

30.

Which currency is appreciating?

a)

The Euro

b)

The US Dollar

c)

Neither

d)

Both