WorksheetsISS Unit 7 Test 2024
Total questions: 19
Worksheet time: 10mins
Name
Class
Date
1.
__________ is a country's ability to produce a good at a lower opportunity cost than another country can.
a)
Comparative Advantage
b)
Productive Capacity
c)
Quota
d)
Tariff
2.
A __________ is a tax on imported goods.
a)
Quota
b)
Tariff
c)
Trade Barrier
d)
Restriction
3.
__________ refers to countries joining together in a group and deciding not to pass laws that block or limit trade.
a)
market economy
b)
free trade
c)
developing economy
d)
economic diplomacy
4.
A country has a trade __________ when the value of the products it imports exceeds the value of the products it exports
a)
barrier
b)
deficit
c)
balance
d)
surplus
5.
A small percentage of goods produced in the United States are __________, or sold to other countries.
a)
tarriffed
b)
imported
c)
exported
d)
traded
6.
What is a limit placed on the amount of foreign goods imported?
a)
quota
b)
tariff
c)
key trade
d)
sanction
7.
The WTO is an international organization that...
a)
institutes trade barriers
b)
sets the exchange rate
c)
sets the discount rate
d)
oversees trade
8.
What occurs when we lack the resources to produce the things we want?
a)
scarcity
b)
wants
c)
marginal benefit
d)
free enterprise
9.
The __________ cost is what you cannot buy or do when choosing to do one thing rather than another.
a)
incentive
b)
marginal
c)
rational
d)
opportunity
10.
__________ are rewards offered to try to get people to take certain economic actions.
a)
profits
b)
marginal benefits
c)
incentives
d)
trade offs
11.
A __________ requires you to compare the costs and benefits of a decision.
a)
trade off
b)
cost-benefit analysis
c)
free enterprise
d)
rational choice
12.
The key reason why international trade has increased so rapidly is due to...
a)
the rise of dictators
b)
a change in consumer tastes
c)
technological advancements and trade agreements
d)
all of the above
13.
With international trade, it is best for a country to have a...
a)
trade deficit
b)
trade surplus
c)
a displacement of workers
d)
none of the above
14.
In order to promote trade, countries often...
a)
restrict trade
b)
create trade barriers
c)
form trade agreements
d)
all of the above
15.
GDP is the value of...
a)
only goods
b)
only services
c)
all final goods and services sold
d)
immediate goods
16.
Companies in the state of Kentucky import televisions from South Korea. Kentucky has the technology to build its own televisions, but not many workers or funds to do so. South Korea is able to produce televisions quicker and cheaper than Kentucky. They buy from South Korea because South Korea has a ...
a)
tariff
b)
quota
c)
comparative advantage
d)
incentive
17.
Ford gets a $5000 tax incentive from the government for building environmentally friendly trucks. How might Ford change their production of pickup trucks?
a)
Create larger, heavier trucks that get very low gas mileage.
b)
Stop building trucks and only produce small cars.
c)
Sell trucks outside of the US to avoid this incentive.
d)
Build trucks that can run on hybrid fuels and get higher gas mileage.
18.
Which of the following would be considered a STRONG incentive?
a)
Dustin's parents have promised him $50 for every A he earns on his report card.
b)
The Rec Center in Whitesburg is offering one free bottle of water to anyone who purchases a membership.
c)
Whitaker Bank is offering a free umbrella to anyone who opens a new savings account.
d)
Your teacher will give anyone who makes a 100% on this test a smiley face sticker.
19.
An assembly line is an example of which of the following?
a)
division of labor
b)
tariff
c)
comparative advantage
d)
profit
100 %
