WorksheetsEcon Ch 15-16 Review
Total questions: 39
Worksheet time: 20mins
A government-imposed fee placed on imported goods is called a:
Tariff
Quota
Subsidy
Tax credit
The value of one nation’s currency expressed in units of another currency is the:
Interest rate
Exchange rate
Inflation rate
Balance of trade
The numerical difference between a country’s exports and imports of goods is its:
Balance of payments
Capital account
Balance of trade
Exchange rate
A record of all financial transactions between a nation and the rest of the world is the:
Balance of payments
Trade surplus
Federal budget
Balance sheet
Producing a good using fewer resources than another producer is known as:
Comparative advantage
Absolute advantage
Opportunity cost
Specialization
Producing a good at a lower opportunity cost than another producer is called:
Comparative advantage
Absolute advantage
Economies of scale
Substitution
The part of the balance of payments that records borrowing, lending, and investments is the:
Current account
Trade balance
Which organization works to encourage nations to reduce barriers to free trade?
World Trade Organization (WTO)
United Nations (UN)
World Bank
International Labor Organization (ILO)
Programs that help workers upgrade their skills to stay competitive in the global economy focus on:
Military spending
Worker training and education
Environmental regulation
Import quotas
A government-created limit on the quantity of a good that may be imported is a:
Tariff
Quota
Subsidy
Export ban
The transfer of state-owned businesses into private ownership is called:
Nationalization
Privatization
Regulation
Central planning
An economic system based on private ownership and competitive markets is known as:
Socialism
Communism
Capitalism (market economy)
Traditional economy
A major obstacle for many developing nations is:
High productivity
Abundant capital
Low levels of productivity and income
Excess exports
An economic system in which the government owns and controls major industries is called:
Capitalism
Socialism
Traditionalism
Feudalism
Developing nations sometimes view rich countries’ environmental and labor rules as:
Fair opportunities
Hidden or disguised trade barriers
Free trade policies
Currency manipulation
Economists define the exchange rate as:
How much one country’s currency is worth in terms of another
The cost of taking out a loan from a bank
The value of goods today compared with earlier years
None of the above
A report labeled 'TARIFFS, QUOTAS, TRADE SUBSIDIES' is most likely about:
Government taxing and spending
Absolute advantage in production
Restrictions on global trade
How currencies fluctuate
NAFTA primarily:
Lowered trade barriers only between the U.S. and Canada
Created a trade zone among the U.S., Canada, and Mexico
Linked European and North American trade policies
Increased tariffs on goods from Asia
A quota is best described as:
A restriction on how many goods may be imported
A fee charged on each imported product
A minimum price for imported goods
A rule requiring labels on imports
If a nation’s current account shows a deficit, economists know that:
Its balance of payments is perfectly balanced
Its capital account shows a surplus
It is automatically exporting more than it imports
It has no trade with other nations
If a nation suddenly stopped importing goods, economists predict that:
Consumers would enjoy a greater variety of goods
All goods would be produced more efficiently at home
Living standards would likely fall
Unemployment would disappear
Jessie is the top scorer on her soccer team. Economists might say:
Her abilities may be best used where her advantage is greatest
Her skills are useless to the team
Her position doesn’t matter for efficiency
The team should trade her immediately
If Nation A produces airplanes at a lower opportunity cost than Nation B, Nation A has:
No advantage in trade
An absolute advantage in all goods
A comparative advantage in airplanes
Higher unemployment
Government-created barriers to trade are:
Artificial limits on international exchange
Methods for guaranteeing full employment
Ways to permanently lower all prices
Tools that always raise GDP
Exports are best described as goods that are:
Sold to buyers in other nations
Purchased from other nations
Made in local factories and sold nearby
Produced only by the government
A leader who supports import quotas is probably trying to:
Protect domestic industries
Reduce tax revenues
Raise wages abroad
Eliminate consumer choice
Imports are goods that are:
Sold to foreign nations
Purchased from other nations
Only produced locally
Supplied by government agencies
According to the idea of comparative advantage, a country should specialize in producing goods:
For which it has the lowest opportunity cost
That no other country produces
That are the most expensive
For which it uses the most resources
Which statement about trade is accurate?
One nation can import only if another exports
Most exported goods have no value to the exporting nation
Every country both imports and exports goods
Only large nations participate in trade
If the government owns major industries like steel and railroads, the system is most likely:
Capitalist
Socialist
Traditional
Feudal
Which is NOT one of the basic economic questions all societies must answer?
What goods and services will be produced?
How can we eliminate scarcity entirely?
How will goods and services be produced?
Who will receive the goods and services?
The 'Tragedy of the Commons' describes:
Overuse and abuse of shared resources
A lack of environmental education
The collapse of the European Common Market
An ancient war over land
Environmental damage often occurs because:
Property rights are unclear or unenforced
Governments always over-regulate
People are never self-interested
Resources are unlimited
Economists argue that elephant populations decline mainly because:
People are greedy and irresponsible
Incentives and property rights are poorly designed
Elephants cannot reproduce in captivity
Governments forbid hunting
David Ricardo argued in 1817 that free trade benefits all nations.
True
False
Export subsidies allow producers to sell items below cost because the government pays part of the expense.
True
False
The European Union adopted a shared currency called the Peso.
True
False
NAFTA lowered trade restrictions among the United States, Mexico, and Canada.
True
False
An import is a product sold to customers in another nation.
True
False
