Free Printable Trade Basics Quiz

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Trade Basics Quiz

Total questions: 19

Worksheet time: 10mins

Name

Class

Date

What is the definition of trade in economics?

Trade refers to the sale of stocks and bonds.

Trade is an exchange for one thing over another.

Trade is the act of providing loans to businesses.

Trade is the process of manufacturing goods.

In economics, what is a producer?

A producer is an individual or entity that creates goods or services for sale.

A producer is a type of financial investor.

A producer is someone who only consumes goods.

A producer is an individual who only sells services without creating anything.

In economics, what is a consumer?

A consumer is a group that invests in stocks and bonds.

A consumer is an individual who only produces goods.

A consumer is an individual or group that purchases goods and services for personal use.

A consumer is a person who sells goods and services.

In economics what is a retailer or middleman?

A retailer buys from the producer and sells to consumers.

A retailer sellls to producers and buys from consumers.

They help increase the four factors of production.

They are studied by macro-economics.

What are the benefits of retailers?

Retailers provide limited customer service.

Retailers have no impact on local economies.

Retailers offer convenience and variety.

Retailers only sell products online.

What is an import?

An import is the act of bringing products or services into a country from another country.

An import is a product made exclusively within a country.

An import is a type of currency exchange.

An import is a tax on goods leaving a country.

What is an export?

An export is a product or service sold to another country.

A product that is given away for free.

A service provided only within a country.

A tax imposed on imported goods.

What is specialization?

Specialization is the act of generalizing across multiple fields.

Specialization refers to the ability to multitask effectively.

Specialization is the process of avoiding any specific area of focus.

Specialization is the process of focusing on a specific area of expertise or task.

What is absolute advantage?

Absolute advantage is the ability to produce less of a good or service than another entity with the same resources.

Absolute advantage refers to the ability to trade goods without any cost.

Absolute advantage is when two entities can produce the same amount of a good or service with different resources.

Absolute advantage is the ability to produce more of a good or service than another entity with the same resources.

10.

What is comparative advantage?

Comparative advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Comparative advantage is the ability to trade goods without any cost.

Comparative advantage refers to the overall economic strength of a country.

Comparative advantage is the ability to produce more of a good than another individual.

11.

Country A can produce 20 tons of rice or 10 cars with one unit of resources. Country B can produce 15 tons of rice or 5 cars with the same unit of resources. Which country has the absolute advantage in producing rice?

a) Country B

b) Both countries have the same absolute advantage

c) Country A

d) Neither country has an absolute advantage

12.

Using the same production possibilities as in Question 1 (Country A: 20 tons of rice or 10 cars; Country B: 15 rice or 5 cars), what is Country A's opportunity cost of producing one car?

a) 2 tons of rice

b) 0.5 tons of rice

c) 10 tons of rice

d) 20 tons of rice

13.

Again, using the same production possibilities (Country A: 20 rice or 10 cars; Country B: 15 tons of rice or 5 cars), what is Country B's opportunity cost of producing one car?

a) 15 tons of rice

b) 5 tons of rice

c) 3 tons of rice

d) 0.33 tons of rice

14.

Based on the opportunity costs calculated before , which country has the comparative advantage in producing cars?

(Country A: 20 rice or 10 cars; Country B: 15 rice or 5 cars)

a) Country A

b) Country B

c) Both countries have the same comparative advantage

d) Neither country has a comparative advantage

15.

What is a tarrif?

A tariff is a regulation on product quality.

A tariff is a fee for shipping goods domestically.

A tariff is a tax on imports.

A tariff is a type of trade agreement.

16.

What is a quota?

A quota is a tax on imported goods.

A quota is a subsidy for domestic producers.

A quota is a type of trade agreement between countries.

A quota is a limit on the amount of a good that can be imported or exported.

17.

Select the common reasons a country would have have tarrifs.

To protect important industries

To keep jobs

To decrease the price of goods

To increase the variety of products.

To introduce various brands.

18.

What is free trade?

Free trade is the exchange of goods only within a single country.

Free trade involves high tariffs and strict quotas.

Free trade is removing barriers between for countries exchanging goods and services.

Free trade is a system of government-controlled trade.

19.

What part of the four factors of production is most closely related to specialization?

land

labor

capital

100 %

Trade Basics Quiz

Total questions: 19

Worksheet time: 10mins

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