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WorksheetsReview 8 (Trade)
Total questions: 60
Worksheet time: 2hrs 35mins
A nation can have an absolute advantage without having a comparative advantage in production.
True
False
Measures the price of one nation's currency in terms of another nation's currency
interest rates
exchange rates
discount rates
inflation rates
Which is NOT an example of a trade barrier?
Tariff
NAFTA
Embargo
Quota
Which is NOT a regional trade agreement
OPEC
NAFTA
EU
ASEAN
The value of the dollar to fall in foreign exchange markets is the effect of
Reserve requirements
Trade surplus
Trade deficit
Aggregate Supply
When a country can produce a product at a lower opportunity cost than another country
absolute advantage
comparative advantage
barrier to trade that places a tax on imports
quotas
standards/regulations
tariff
embargo
barrier to trade that limits the amount of goods or services that can be imported
quota
tariff
standard/regulation
embargo
government payment to a domestic producer to encourage or protect a certain economic activity
tariff
standard/regulation
subsidy
quota
If the U.S. government disagrees with a foreign country's policies and wants to prevent trading with that country, the MOST effective action the U.S. government can take is to
place high tariffs on all goods from that country
place an embargo on all goods from that country
enforce safety standards on all goods from that country
encourage a quota on all goods shipped from that country
What is the MOST LIKELY result of an increase in the value of the U.S. dollar against the Chinese currency?
U.S. workers in the United States would benefit
Chinese imports of U.S. goods would benefit
U.S. consumers of Chinese goods would benefit
Chinese consumers of Chinese goods would benefit
Which of the following trade blocks liberalized trade between the United States, Canada, and Mexico?
EU- European Union
NAFTA- North American Free Trade Agreement
ASEAN- Association of Southeast Asian Nations
WTO- World Trade Organization
Helps work out trade issues between countries
NAFTA- North American Free Trade Agreement
WTO- World Trade Organization
EU- European Union
labor unions
A tariff on a good or service
would increase the price of the good or service in the domestic market
would decrease the price of the good or service in the domestic market.
United States citizens who want to buy foreign products would be hurt if the dollar is depreciating
True
False
Comparative advantage is the reason for why countries trade.
True
False
How do trade barriers impact consumers?
They increase the price of imported goods
They decrease the price of imported goods
What does a protective tariff seek to protect?
protectionists
revenue
free trade
domestic industries
Which of the following is the best synonym for infant in the economic term infant industries argument?
youthful
traditional
dependent
emerging
Why do nations trade?
so they can specialize
because they believe that the products they receive are worth more that the products they give up
because they need to acquire certain raw materials
all of the answers
In international trade, comparative advantage is measured in ___.
foreign exchange
efficiency
trade-weighted value
difference between money paid and money received in trade
The United States trade deficit causes
he value of the dollar to strengthen in foreign exchange markets.
the value of the dollar to fall in foreign exchange markets.
increased employment opportunities for Americans in import industries.
worldwide recessions.
An increase in the value of a currency; one currency can buy more of another
Currency Depreciation
Foreign Direct Investment
Currency Appreciation
Tariffs
SST
Which of the following is a primary factor that can cause a nation's currency to depreciate?
Increased interest rates.
High levels of inflation.
A trade surplus.
Strong economic growth.
How does the presence of multinational corporations typically affect employment in a state like Georgia?
It leads to a decrease in overall employment.
It creates new job opportunities.
It has no significant impact on employment.
It primarily affects employment in the agricultural sector.
What is a subsidy?
A tax on imports.
A limit on the quantity of imports.
Government financial assistance.
A trade agreement.
Indonesia has cooperation with Saudi Arabia for developing oil refinery, it is an example of… .
Dual cooperation
Bilingual cooperation
Bilateral cooperation
International cooperation
Multilateral cooperation
The benefits of international economic cooperation are, except… .
Economic progression
Increasing skill, cleverness, creativity
For getting loan and finance help
Depressing main price per production unit
Making easier for getting main or additional material
Asian Pacific Economic Cooperation (APEC) is an example of… .
Bilingual cooperation
Bilateral cooperation
Regional cooperation
International cooperation
Interregional cooperation
10. The emergence of the internet and digital technologies has significantly impacted globalization by?
Increasing trade barriers and protectionism
Facilitating faster communication and global information sharing
Slower international travel and cultural exchange
Decline of international organizations and cooperation
What is the main goal of a free trade agreement?
To increase tariffs on imported goods
To restrict trade between countries
To eliminate trade barriers and promote economic cooperation
To encourage trade imbalances
What benefit does international trade have on economic growth?
Trade deficits leading to higher income levels
Stimulation of economic growth and innovation
Isolation from global markets
Decreased consumer choices
Which of the following is a benefit of international trade?
Reduced economic growth
Limited consumer choices
Increased prices of goods
Access to a wider variety of products
What is the main purpose of the European Union?
Promote peace, stability, and economic prosperity
Promote military alliances
Promote individual country dominance
Promote global isolation
Read the information below.
Each country wanted its economy to thrive and businesses to expand. They decided the best way to achieve this was to form a group of unified countries called the
European Union. This would allow them to combine their resources in economic decision-making and rebuilding efforts. Countries would still manage their own
internal issues, but they would all share a common currency.
Which was one result of the agreement described above?
It eliminated trade barriers among members
It reduced military presence in member nations
It created financial unpredictability among members
It decreased domestic security in member nations
Which of the following is an example of a non-tariff barrier to international trade?
Import quotas
Export subsidies
Language differences
Trade restrictions
What is an import quota?
A tax imposed on imported goods
A restriction on the quantity of goods that can be imported
Financial assistance provided to domestic producers for exporting goods
An agreement between countries to eliminate import tariffs
What role do government policies play in international trade?
They have no influence on international trade
They can promote or restrict trade through regulations and policies
They only impact domestic markets, not international trade
They promote global economic inequality
How do exchange rates affect international trade?
They have no impact on international trade
They can impact the price competitiveness of goods and services
They only affect countries with strong economies
They promote protectionist trade policies
What is a common barrier to international trade?
Tariffs and import/export quotas
Promotion of free trade agreements
Cultural exchange and mutual understanding
Shared economic interests among nations
What is the impact of international trade on employment?
Increased unemployment due to import competition
Decreased job opportunities in domestic markets
Limited impact on employment levels
Increased job opportunities due to export expansion
Which of the following is a key benefit of international trade?
Increased competition leading to higher prices
Reduction in global economic inequality
Decreased availability of goods and services
Greater reliance on domestic production only
What is a trade deficit?
When a country exports more goods than it imports
When a country imports more goods than it exports
When a country has an equal balance of imports and exports
When a country does not engage in international trade
What is a trade barrier?
A measure that restricts or prevents the free flow of goods and services across borders
A country's comparative advantage in producing a particular good
A form of economic aid provided to developing countries
A financial penalty imposed on countries with trade surpluses
What is the World Trade Organization (WTO)?
An international organization that promotes global environmental conservation
A group of countries that aim to establish a global military alliance
An intergovernmental body that regulates and promotes international trade
A forum for cultural exchange and diplomatic negotiations among nations
What is one of the primary benefits of international trade?
Increased tariffs and trade barriers
Reduced economic growth
Expansion of markets and increased access to goods and services
Limited cultural exchange
How does international trade benefit consumers?
By reducing consumer choices
By increasing prices of goods and services
By providing access to a wider variety of goods and services
By limiting availability of goods and services in the domestic market
What is the role of international trade in fostering global cooperation?
Restricting diplomatic relations among countries
Promoting isolationism and protectionism
Fostering economic interdependence and peaceful relations among nations
Limiting opportunities for cultural exchange and mutual understanding
Which of the following are negative impacts of science and technology to society and economy? [Answer is more than 1]
Waste disposal
Fast delivery
Global warming
Laziness
Which of the following shows the main role of science and technology in distribution?
Indofood is investing in a new machine to reduce labour costs
Tokopedia provides an online and integrated tracking service for its customers
We can purchase everything online without leaving our homes though the use of apps
Aice ice cream uses different ingredients that are earth friendly
Cynthia owns an event organisation that often takes footage using drones just like shown in the picture attached. Cynthia is thinking to get a new commercial drone because she believes an upgrade can produce higher-qualitay videos from different kinds of angles which automatically attract more customers.
What is the economic positive impact of using a better drone for commercial purposes based on the case study above?
Drones enable Cynthia to deliver the photos and videos directly to the clients without using USB/flash disk.
People can borrow Cynthia's drone to buy products without leaving their premises/houses.
She had to lay off some of her workers because the drone is really efficient.
Higher revenue due to better quality of the product might lead to more profit.
How does social media influence modern society?
Social media only influences the older generation in modern society
Social media has no impact on modern society
Social media influences modern society by shaping communication, information sharing, and influencing behavior.
Social media only influences fashion trends in modern society
What are the potential risks and benefits of artificial intelligence?
The potential risks include increased job opportunities, improved privacy, and ethical advancements, while the benefits include reduced efficiency, lack of innovation, and economic decline.
The potential risks include job displacement, privacy concerns, and ethical implications, while the benefits include improved efficiency, innovation, and economic growth.
The potential risks include job satisfaction, privacy protection, and ethical behavior, while the benefits include decreased efficiency, lack of innovation, and economic recession.
The potential risks include job security, privacy enhancement, and ethical behavior, while the benefits include reduced efficiency, lack of innovation, and economic downturn.
How does technology affect the economy?
By increasing productivity, creating new industries, and improving efficiency.
By decreasing productivity and creating unemployment
By causing inflation and reducing efficiency
By leading to the collapse of industries and reducing productivity
