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Economy and International Trade Flashcards | StudBud
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Economy and International Trade
Economy and International Trade
30 terms
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international
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
A person who opposes free trade would MOST likely
oppose protectionist policies
support a reduction in tariffs
call for an end to quotas
call for supporting American jobs
2
Subsidies
industries are more competitive towards foreign competitors
Governments puts restrictions on trade for completitors
3
The ability of one nation to make something at a lower opportunity cost than another country.
absolute advantage
comparative advantage
trade deficit
trade surplus
4
Which of the following economic systems BEST provides incentives to produce?
Command
Market
Mercantilism
Traditional
5
NAFTA BEST represents the controversy that exists over
debt
embargoes
scarcity
trade barriers
6
NAFTA
27 member countries
coalition of nations that govern international trade
United States, Canada, and Mexico
7
The use of trade barriers to protect a nation's industries from foreign competition is called
protectionism
mercantilism
free trade
fiscal policy
8
What is International Trade?
Free trade
The exchange of goods and services among nations
a commercial exchange between nations without restrictions
Imports
9
The U.S can make 50 shoes compared to Perus 90 and make 30 soccer balls compared to Perus 100.
The U.S has comparative advantage on soccer balls and shoes
Neither have an absolute advantage
Peru has an absolute advantage in making soccer balls
The U.S has an absolute advantage in making soccer balls
10
Which of the following would be MOST LIKELY to favor U.S tariffs?
producers of exported U.S products
U.S consumers
U.S labor unions
foreign producers of U.S imports
11
Which of the following would be MOST supportive of British tariffs?
British consumers
British manufacturers who sell their products domestically
A British company hoping to export goods to other countries
A U.S company hoping to export goods to Britain
12
Which of the following puts limits on the amount of goods imported from another country?
Tariff
Subsidy
Embargo
Quota
13
Refusing to trade with another country.
Embargo
Subsidy
Tariff
Quota
14
WTO
United States, Canada, and Mexico
27 member countries
Coalition of nations that govern international trade
15
The U.S can make 50 shoes compared to Perus 90 and make 30 soccer balls compared to Perus 100.
The U.S has a comparative advantage in making shoes
neither has a comparative advantage
Peru has a compartive advantage in making shoes
both have a comparative advantage
16
Imports
goods coming in
goods going out
17
When regions specialize and trade, the result is
an increase in the variety of goods, but decrease in supply
a decrease in both supply and variety of goods
an increase in both supply and variety of goods
an increase in the supply of goods, but decrease in variety
18
EU
Coalition of nations that govern international trade
27 member countries
United States, Canada, and Mexico
19
The U.S charges .30 on every $1 worth of foreign tennis shoes imported. Which type of barrier?
Embargo
Tariff
Quota
It is not a trade barrier
20
Which of the following is usually an effect of an embargo?
prices rise because consumers have fewer options
prices fall because consumers have more options
21
What is Free Trade?
Surplus
Deficit
Exchange between nations conducted without regulations
The exchange of goods and services among nations
22
Surplus
Exports>Imports
Imports>Exports
23
When a nation imports more than they export they are said to have _______________.
a trade deficit
a national difference
a balance of trade
a trade surplus
24
The purpose of a tariff, when used for protectionism, is to
limit the number of foreign goods imported into a country
make an imported good more expensive than its domestic good
raise revenues to pay subsidies to domestic producers
25
Nations that are a target of embargoes are forced to deal with ______________
more foreign competition
lower tariffs
increased scarcity
falling prices
26
Exports
goods going out
goods coming in
27
To say that net exports are negative is the same as saying that _________________
there is a budget deficit
the exchange rate has depreciated
there is a capital account deficit
there is a current account deficit
28
Protectionism
Government puts restrictions on trade for competitors
Industries are more competitive towards foreign competitors
29
Deficit
Exports>Imports
Imports>Exports
30
Which of the following economic factors is MOST LIKELY to support free trade?
The United Steelworkers of America
U.S electronics producers
Coca-Cola Corporation
