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Trade

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

What is Trade?

a)

The import and export of goods only.

b)

The voluntary exchange of goods and sevices by people.

c)

The exchange of goods of equal value, without using money.

d)

A system of money in general use in a particular country.

2.

International (external) trade is...

a)

the exchange of goods and services between businesses only.

b)

the exchange of goods and services without the use of money.

c)

the exchange of goods and services that occur within the borders of a country.

d)

the exchange of goods and services between countries.

3.
To focus on producing one thing to improve productivity is known as:
a)
Specialization
b)
International trade
c)
Absolute Advantage
d)
Supply and Demand
4.
When determining comparative advantage one must determine 
a)
Opportunity cost
b)
Specialization
c)
Absolute Advantage
d)
Embargos 
5.
If I am better at all types of production, I have the ______ in all forms of production.
a)
Comparative advantage
b)
Specialization
c)
Absolute advantage
d)
developed nation
6.
This trade barrier limits the number of products that can be brought into a country.
a)
Tariff
b)
Quota
c)
Embargo
d)
Subsidy
7.
This is a tax on imports that is used to increase price of foreign products and raise government revenue. 
a)
tariff
b)
quota
c)
subsidy
d)
embargo
8.
This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.
a)
tariff
b)
quota
c)
subsidy
d)
embargo
9.
Which of the following is not a benefit of trade between nations?
a)
More stuff
b)
Better stuff
c)
cheaper stuff
d)
similar stuff
10.
Infant industries can be helped in the world market by giving those industries a 
a)
subsidy
b)
quota
c)
embargo
d)
tariff
11.

The currency exchange rate is constantly changing.

a)

True

b)

False

12.

The producer that can produce the most output OR requires the least amount of inputs (resources)

a)

Comparative Advantage

b)

Trade Offs

c)

Absolute Advantage

d)

Opportunity Cost

13.

requiring or relying on something

a)

dependent

b)

absolute advantage

c)

comparative advantage

d)

specialization

14.

Countries become _______ when trade and competition among countries increases.

a)

interdependent

b)

greedy

c)

cheap

15.

When exports exceed imports, there is a trade ______ in the economy.

a)

surplus

b)

deficit

c)

discrepancy

16.

When imports exceed exports, there is a trade _______.

a)

surplus

b)

deficit

c)

discrepancy