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Chapter 16 Vocabulary Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

________________ is the difference between money paid to and received from other nations in trade.

a)

Foreign exchange

b)

Trade deficit

c)

Balance of payments

d)

Absolute advantage

2.

A tax placed on imports is called a _______________.

a)

Trade deficit

b)

Tariff

c)

Quota

d)

Foreign exchange

3.

__________________ is a system in which forces of supply and demand establish currency value among nations.

a)

Absolute advantage

b)

Fixed exchange rate

c)

Protective tariff

d)

Flexible exchange rate

4.

A tax on imports placed to protect domestic industries is called a _________________.

a)

Protective tariff

b)

Quota

c)

Protectionist

d)

Foreign exchange

5.

_______________ is foreign currencies used by countries to conduct international trade.

a)

Absolute advantage

b)

Foreign exchange

c)

Protective tariff

d)

Flexible exchange rate

6.

This occurs when the value of products imported is greater than the value of products exported. (Imports > Exports)

a)

Balance of payments

b)

Absolute exchange

c)

Trade deficit

d)

Foreign exchange

7.

The system in which the price of one country's currency in terms of another country's currency is set and does not change is called _________________.

a)

Absolute advantage

b)

Fixed exchange rate

c)

Protective tariff

d)

Flexible exchange rate

8.

A ______________ is a limit on the amount of a product that can be imported into the country.

a)

Quota

b)

Tariff

c)

Trade deficit

d)

Foreign exchange

9.

_________________ is when a nation can produce more of a particular product than another nation.

a)

Foreign exchange

b)

Absolute advantage

c)

Trade deficit

d)

Balance of payments

10.

A ________________ is a person who wants to protect domestic producers against foreign competition.

a)

Protectionist

b)

Foreign exchange

c)

Trade deficit

d)

Tariff