WorksheetsInternational Economics Review
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
The ability of one person or nation to produce more of a good than another person or nation
a)
Comparative Advantage
b)
Absolute advantage
c)
exports
d)
protectionism
2.
The use of trade barriers to protect a nation’s industries from foreign competition
a)
Balance of trade
b)
NAFTA
c)
Quotas
d)
Protectionism
3.
Exports minus imports or how many goods a county exports versus imports
a)
Exports
b)
Subsidy
c)
Quotas
d)
Balance of Trade
4.
A regional trade organization made up of European nations
a)
NAFTA
b)
EU
c)
ASEAN
d)
CARICOM
5.
Agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the US
a)
NAFTA
b)
EU
c)
ASEAN
d)
CARICOM
6.
Limit of the amount of a good that can be imported
a)
Subsidy
b)
Quota
c)
Exports
d)
Appreciation
7.
A good that is sent to another country for sale
a)
export
b)
import
c)
quota
d)
subsidy
8.
An increase in the value of a currency
a)
apprecation
b)
depreciation
c)
quota
d)
subsidy
9.
Government payments to a local supplier to reduce the supplier costs. This helps local businesses survive because it is getting direct aid from the government
a)
Balance of trade
b)
protectionism
c)
exchange rate
d)
subsidy
10.
Measure the price of one nation’s currency in terms of another nation’s currency
a)
appreciation
b)
depreciation
c)
exchange rate
d)
balance of trade
11.
When a nation imports more than it exports, economists say it has which of the following?
a)
A trade surplus
b)
A balance of trade
c)
A trade deficit
d)
A national difference
12.
What happens when a nation’s currency depreciates?
a)
Its products become more expensive to other nations
b)
Its products become cheaper to other nations and exports may increases
c)
Nothing
d)
It halts all trade
13.
Suppose the US decreases the tariff on imported beef which makes foreign beef cheaper than US beef. What would the consequences be?
a)
There would be an increase in the number of imported beef and the number of beef produced in the US
b)
There would be a decrease in the number of imported beef and the number of beef produced in the US
c)
There would be an increase in the number of imported beef and a decrease in the number of beef produced in the US
d)
There would be a decrease in the number of imported beef and an increase in the number of beef produced in the US
14.
Those in favor of protectionist trade policies would most likely
a)
Believe that restrictions harm consumers
b)
Argue in support of free trade
c)
Support a massive reduction in tariffs
d)
Cite the need to preserve domestic industries and jobs
15.
The US bans beef imports from Canada after a Mad Cow Disease outbreak there. This is an example of which type of barrier to trade?
a)
Standards
b)
Quota
c)
Subsidy
d)
Tariff
16.
According to the law of comparative advantage, a country should
a)
Specialize and export goods with the lowest production cost
b)
Specialize and export goods with the lowest opportunity cost
c)
Specialize and export goods with the lowest average cost
d)
Specialize and export goods with the highest opportunity cost
17.
Suppose that there is a balance of trade in both the US and Canada. Then, the US dollar appreciates against the Canadian dollar. What would the likely outcome be?
a)
A trade deficit in both countries
b)
A trade surplus in Canada
c)
A trade surplus in the US
d)
A trade deficit in Canada
18.
What is an official ban on trade or other commercial activity with a particular country?
a)
Tariff
b)
Product standard
c)
Embargo
d)
Quota
19.
Which of the following is NOT an argument in favor of protectionism?
a)
Protectionism shields infant industries from competition
b)
Protectionism safeguards workers’ jobs
c)
Protectionism promotes industries that are essential to national security
d)
Protectionism makes domestic firms more competitive in the long run
20.
What is the theme song for international trade?
a)
Randy Newman, “You Got a Friend In Me”
b)
The Rembrandts, “I'll Be There For You”
c)
Biz Markie, “Just a Friend”
d)
Dionne Warwick, Elton John, Gladys Knight & Stevie Wonder, “That's What Friends Are For”
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