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Unit 7: International Trade (IN1/IN2)

Total questions: 12

Worksheet time: 7mins

Name
Class
Date
1.
To focus on producing one thing to improve productivity is known as:
a)
Specialization
b)
International trade
c)
Absolute Advantage
d)
Supply and Demand
2.
When determining comparative advantage one must determine 
a)
Opportunity cost
b)
Specialization
c)
Absolute Advantage
d)
Embargos 
3.

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
4.
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
5.

Infant industries can be helped financially in the world market by giving those industries a 

a)
subsidy
b)
quota
c)
embargo
d)
tariff
6.
Who will be hurt by a tariff on medicine coming into the US.
a)
US medical companies
b)
US government revenue
c)
Sick people in US 
7.

What is one of the benefits of international trade?

a)

Decreased production due to market saturation

b)

Increased production and consumption due to efficiency gained through specialisation

c)

Limited range of goods and services available in the market

d)

Higher costs of production due to increased competition

8.

How can firms experience greater economies of scale?

a)

By reducing their market size

b)

By limiting their customer base

c)

By having access to larger (international) markets

d)

By trading only within domestic markets

9.
Why does the United States need to import products?
a)
The US does not import products
b)
Some are easier and cheaper to make in other countries
c)
The US makes all of its own products
10.

The government tells people what to buy and how much to buy:

a)

Traditional Economy

b)

Market Economy

c)

Command Economy

11.

Why would a country impose a tariff or quota on imported goods?

a)

to raise the price of imported foreign goods, which would encourage people to buy domestic goods

b)

to raise the price of imported foreign goods to help foreign countries make more money

c)

to raise the price of exported goods so your country makes more money

d)

to lower the price of imported foreign goods, which would encourage people to buy more imports

12.
The measure of how much one currency is worth in relation to another.
a)
change rate
b)
exchange rate