Turkey trades textiles to Germany in exchange for German machinery.This is possible because

each country has comparative advantage in different goods.

Which BEST describes exchange rates?

The price of one nation’s currency in terms of another.

Why is an embargo used in situations where countries have severe political differences?

Embargoes typically ban all trade between two countries.

The balance of trade calculates

Number of exports minus imports

Someone who strongly opposes a trade barrier like a tariff would argue that the barrier

will lead to higher prices and fewer imported goods.

What is the primary purpose of the North American Free Trade Agreement?

to reduce trade barriers among the US, Canada, and Mexico

What will happen to US imports & exports if the US $ becomes stronger than other currencies?

imports will increase, exports will decrease

Supporters of the EU and free trade would contend that such agreements

stimulate democratic reform and open markets

What do the EU and ASEAN have in common?

They are all interested in promoting free trade.

Which group benefits when the US dollar depreciates against other currencies?

Foreign citizens vacationing in the US

Which monetary policy decision is meant to increase the U.S. money supply?

The Fed buys bonds in the open market

Which headline below is an example of using standards as a trade barrier?

“Only professionally cleaned Oranges allowed in US”

studbud

International Economics

19 termsStudBud Administration2,917 plays

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
Turkey trades textiles to Germany in exchange for German machinery.This is possible because
each country has comparative advantage in different goods.
countries share comparative advantage in the same goods
neither country has an absolute advantage in any good.
the countries are forced to trade with each other.
2
Which trade barrier is likely to increase business revenue?
Embargo
Standard
Tariff
Quota
3
A tariff placed on foreign steel imports represents
a barrier to trade
a subsidy to domestic producers
a balance of payment deficit
none of these
4
A tariff can BEST be described as which of the following?
none of these
a tax on imported goods.
government payments
a limit on imports
5
Having a comparative advantage in a good means that a country can produce the good
At a lower opportunity cost
Faster
Safer
Better
6
Which BEST describes exchange rates?
An increase in the price of a market basket.
An interest rate charged to consumers who take out a loan.
The price of one nation’s currency in terms of another.
The difference between exports and imports
7
Why is an embargo used in situations where countries have severe political differences?
taxes collected on imports can be used for military tactics.
A country can set unfair standards for the opposing country.
Embargoes typically ban all trade between two countries.
All the above
8
The balance of trade calculates
GDP of a country
Number of exports minus imports
Exchange rate
All the above
9
Someone who strongly opposes a trade barrier like a tariff would argue that the barrier
would lead to lower government involvement in the economy.
will lead to higher prices and fewer imported goods.
would completely eliminate imported goods.
might cause more unemployment in domestic industries.
10
What trade barrier is beneficial to both domestic producers AND domestic consumers of a good?
tariff
quota
subsidy
embargo
11
What is the primary purpose of the North American Free Trade Agreement?
to reduce trade barriers among the US, Canada, and Mexico
to counter the establishment of the EU
none of these
To reduce trade barriers between the US and China
12
What will happen to US imports & exports if the US $ becomes stronger than other currencies?
both imports and exports will increase
both imports and exports will decrease
imports will increase, exports will decrease
imports will decrease exports will increase
13
Supporters of the EU and free trade would contend that such agreements
hamper democratic reforms and open markets
All the above
increase government control of a nation's economy.
stimulate democratic reform and open markets
14
What do the EU and ASEAN have in common?
all the above
They are all interested in promoting free trade.
The United States is a member of all three
Each group attempts to enforce trade barriers rigidly.
15
Which group benefits when the US dollar depreciates against other currencies?
US citizens traveling in foreign countries
Foreign governments with US Treasury Bonds
US citizens buying foreign goods and services
Foreign citizens vacationing in the US
16
Which monetary policy decision is meant to increase the U.S. money supply?
The Fed buys bonds in the open market
The Fed sells bonds in the open market
17
International trade MOST OFTEN takes place because of differences in
trade barriers
absolute advantage
comparative advantage
None of the above
18
Which role does money have in economic systems?
a resources for production
a medium of exchange
a measure of satisfaction
a good to consume
19
Which headline below is an example of using standards as a trade barrier?
“Mexican imports completely abolished”
“Limit of 1 million tons of sugar to be imported”
“Only professionally cleaned Oranges allowed in US”
“US producers of wheat get big payday from Congress.”

International Economics Flashcards | StudBud

International Economics

19 termsStudBud Administration2,917 plays

International Economics

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
Turkey trades textiles to Germany in exchange for German machinery.This is possible because
each country has comparative advantage in different goods.
countries share comparative advantage in the same goods
neither country has an absolute advantage in any good.
the countries are forced to trade with each other.
2
Which trade barrier is likely to increase business revenue?
Embargo
Standard
Tariff
Quota
3
A tariff placed on foreign steel imports represents
a barrier to trade
a subsidy to domestic producers
a balance of payment deficit
none of these
4
A tariff can BEST be described as which of the following?
none of these
a tax on imported goods.
government payments
a limit on imports
5
Having a comparative advantage in a good means that a country can produce the good
At a lower opportunity cost
Faster
Safer
Better
6
Which BEST describes exchange rates?
An increase in the price of a market basket.
An interest rate charged to consumers who take out a loan.
The price of one nation’s currency in terms of another.
The difference between exports and imports
7
Why is an embargo used in situations where countries have severe political differences?
taxes collected on imports can be used for military tactics.
A country can set unfair standards for the opposing country.
Embargoes typically ban all trade between two countries.
All the above
8
The balance of trade calculates
GDP of a country
Number of exports minus imports
Exchange rate
All the above
9
Someone who strongly opposes a trade barrier like a tariff would argue that the barrier
would lead to lower government involvement in the economy.
will lead to higher prices and fewer imported goods.
would completely eliminate imported goods.
might cause more unemployment in domestic industries.
10
What trade barrier is beneficial to both domestic producers AND domestic consumers of a good?
tariff
quota
subsidy
embargo
11
What is the primary purpose of the North American Free Trade Agreement?
to reduce trade barriers among the US, Canada, and Mexico
to counter the establishment of the EU
none of these
To reduce trade barriers between the US and China
12
What will happen to US imports & exports if the US $ becomes stronger than other currencies?
both imports and exports will increase
both imports and exports will decrease
imports will increase, exports will decrease
imports will decrease exports will increase
13
Supporters of the EU and free trade would contend that such agreements
hamper democratic reforms and open markets
All the above
increase government control of a nation's economy.
stimulate democratic reform and open markets
14
What do the EU and ASEAN have in common?
all the above
They are all interested in promoting free trade.
The United States is a member of all three
Each group attempts to enforce trade barriers rigidly.
15
Which group benefits when the US dollar depreciates against other currencies?
US citizens traveling in foreign countries
Foreign governments with US Treasury Bonds
US citizens buying foreign goods and services
Foreign citizens vacationing in the US
16
Which monetary policy decision is meant to increase the U.S. money supply?
The Fed buys bonds in the open market
The Fed sells bonds in the open market
17
International trade MOST OFTEN takes place because of differences in
trade barriers
absolute advantage
comparative advantage
None of the above
18
Which role does money have in economic systems?
a resources for production
a medium of exchange
a measure of satisfaction
a good to consume
19
Which headline below is an example of using standards as a trade barrier?
“Mexican imports completely abolished”
“Limit of 1 million tons of sugar to be imported”
“Only professionally cleaned Oranges allowed in US”
“US producers of wheat get big payday from Congress.”