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Trade and Trade Barriers

Total questions: 15

Worksheet time: 13mins

Name
Class
Date
1.
The lowering or elimination of protective tariffs and other trade barriers between two or more nations.
a)
free trade
b)
protectionism
c)
balance of trade
2.
A limit on the amount of a good that can be imported.
a)
import quota
b)
export quota
3.
A means of preventing a foreign product or service from freely entering a nation's territory.
a)

trade surplus

b)

net exports

c)

trade barriers

4.

The ability to produce a product most efficiently given all the other products that could be produced.

a)

absolute advantage

b)

comparative advantage

5.
A tax on imported goods.
a)

import

b)

export

c)

tariff

d)

income tax

6.
An excess of imports over exports.
a)
trade surplus
b)
trade deficit
7.
Protects infant industries, hurts domestic workers, labor standards are not the same, and to protect national security.
a)
Arguments against free trade
b)
arguments for free trade
8.
Increases competition, allows domestic goods to be sold all over the world, allows country to expose comparative advantage through specialization.
a)
arguments against free trade
b)
arguments for free trade
9.
A ban; government prohibits the import of that item.
a)

embargo

b)

specialization

c)

subsidy

10.

Comparative advantage: Because each nation has limited natural resources, a country must weigh its best options or ________________ when using natural resources to produce a particular good or service for export.

a)

opportunity costs

b)

government structure

c)

military strength

d)

All of these

11.

International trade tends to encourage companies to be more competitive, thus forcing prices down and increasing quality.

a)

True

b)

False

12.

Which country does the U.S. have the smallest trade deficit with and what is the amount of the deficit?

a)

Germany; 65 billion

b)

Japan; 69 billion

c)

China; 375 billion

d)

Canada; 18 billion

13.

Which country does the U.S. have the largest trade deficit with and what is the amount of the deficit?

a)

Germany; 65 billion

b)

Japan; 69 billion

c)

China; 375 billion

d)

Mexico; 71 billion

14.

What is it called when a company focuses on producing one type of good or service?

a)

Specialization

b)

Productivity

c)

Underutilization

d)

GDP per capita

15.

What would be an argument FOR protectionism (tariffs)?

a)
Reduction of government revenue.
b)
Increased competition from foreign markets.
c)
Encouragement of free trade agreements.
d)
Protection of domestic industries and jobs.