WorksheetsEcon 5.1 Quiz Review
Total questions: 13
Worksheet time: 7mins
Trade barriers decrease ability to trade internationally. When we decrease international trade, we have less options as consumers.
True
False
Who has the absolute advantage in producing boats?
Country Y
Country Z
Which country has the absolute advantage in producing trains?
Country Y
Country Z
Who should specialize in boat production because they have comparative advantage?
Country Y
Country Z
Who should specialize in train production because they have comparative advantage?
Country Y
Country Z
Country A and Country B are trading partners. Both countries grow coffee beans and both countries produce microchips. Country A has a temperate climate with lots of rain and sun. Country B's climate is more arid and desert-like, however they have a lot of knowledge and skills in technology. What situation would likely benefit both countries the MOST?
Country A should specialize in growing coffee beans; Country B should specialize in microchip production. The two countries engage in trade.
Country B should specialize in growing coffee beans; Country A should specialize in microchip production. The two countries engage in trade.
Country A and Country B both specialize in producing microchips. The two countries impose barriers to trade with each other.
Country A and Country B both refuse to specialize their production. The two countries impose barriers to trade with each other.
To figure out a country's "balance of trade" you must subtract their imports from their exports.
True (exports-imports)
True (imports-exports)
If a nation's imports for one year are worth $6 billion and its exports are worth $10 billion the same year, that nation has
a trade surplus, or positive trade balance.
a trade deficit, or negative trade balance.
a negative balance of payments.
a positive balance of payments.
Trade blocs, like the USMCA and the European Union promote economic growth by reducing trade barriers.
True
False
A government that has strict quality control measures on their imports uses the trade barrier of:
quotas
embargoes
subsidies
standards
Tariffs are ___________________; quotas are ________________.
limits on exports; taxes on exports
limits on imports; taxes on imports
taxes on imports; limits on imports
taxes on exports; limits on exports
While there are still limitations, free trade typically equates to better prices, better quality, and
the ability to satisfy all needs and wants
a wide variety of products to choose from.
a decrease in job outsourcing
conflict-free international trade
When governments put up trade barriers in order to protect domestic jobs and help infant industries, they are likely to be proponents of:
free trade
protectionism
NAFTA/USMCA
ASEAN
