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Unit 6 Economics Review

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

How has free trade benefitted the United States?

a)

It resulted in economic growth

b)

economic growth resulted in a surplus

c)

it resulted in a surplus

d)

economic surplus resulted in growth

2.

With a given amount of resources, a country with a comparative advantage will produce what kind of product?

a)

something with higher opportunity costs

b)

something with lower opportunity costs

c)

unequal resources

d)

increased economic growth

3.

Why do countries specialize in particular trade products?

a)

unequal distribution of resources

b)

it affects workers

c)

increased economic growth

d)

shifts the production possibility

4.

Japan has a 100% tariff on car imports from the US, a sports car in the US cost $80,000, how much will it cost in Japan, would it increase or decrease US exports?

a)

$160,000, decrease exports

b)

$160,000, increase exports

5.

How could the US increase exports of sports cars?

a)

negotiate to lower tariffs on sports cars

b)

take away tariffs on sports cars

c)

negotiate higher tariffs on sports cars

6.

Supporters of protectionism would argue that free trade adversely affects which group of people?

a)

it's workers

b)

it's owners

c)

nobody

d)

citizens

7.

How do fluctuations to the international exchange rate of nation's currency affect its balance of its trading partners?

a)

excommunication

b)

aerospace

c)

physics

8.

How does the international trade impact economic growth within a trading nation?

a)

shifts the production possibility curve outward, by using resources more efficiently

b)

shifts the production possibility curve inward, by using resources more efficiently

9.

The late twentieth century has been characterized by an increase in free trade agreements. Advocates of free trade argue that it results in?

a)

Decreased economic growth

b)

Increased economic growth

c)

decreased economic expansion

10.

What is a comparative advantage?

a)

the ability to produce goods and services at a lower opportunity cost, resulting absolute advantage

b)

the ability to produce goods and services at a higher opportunity cost, resulting absolute advantage