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Unit 5: International Economics Flashcards | StudBud
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Unit 5: International Economics
Unit 5: International Economics
30 terms
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Flashcards
30 cards
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Questions
30
Answers
1
The free trade organization that started after WWII and has grown to nearly 30 countries is...
NATO.
the United Nations.
the European Union.
SEATO.
2
An advocate for free trade would argue for all of the following EXCEPT....
imposing subsidies.
eliminating tariffs.
ending embargoes.
reducing quotas.
3
A nation's ability to produce a good more efficiently, is called...
comparative advantage.
interdependence.
foreign trade.
globalization.
4
The Asian nations of Cambodia, Indonesia, Laos, Malaysia, Philippines, and Thailand belong to..
ASEAN.
OAS.
NAFTA.
NATO.
5
In terms of Rupees, Canadian dollars are..
worth significantly more.
worth significantly less.
worth slightly less.
worth slightly more.
6
When the value of the US dollar appreciates to the Pound Sterling, who will benefit?
an American traveling in England
no one benefits
an English traveler in the US
an American exporter
7
When a nation can produce a good for cheaper than another, we say it has a(n)...
comparative advantage.
free trade agreement.
economic interdependence.
tariff.
8
The exchange rate for Jamaican dollars goes from 1 USD = 57 JMD to 1 USD = 97 JMD. This means..
Fewer Americans will travel to Jamaica.
More money will be printed in Jamaica.
More Americans will travel to Jamaica.
More Europeans will travel to Jamaica.
9
When Mexicans purchase more imported goods and fewer domestic goods then they move toward...
a trade surplus, and income will decrease.
a trade deficit, and income will decrease.
a trade deficit, but income will increase.
a trade surplus, but income will increase
10
When the Yen rises compared to other currencies, this means
it takes fewer Yen to equal a unit of foreign currency
it makes more Yen to equal a unit of foreign currency
The value of a foreign currency is harder to measure in Yen
The value of the Yen is harder to measure in terms of others
11
Laissez-faire capitalists tend to favor...
issuing tariffs.
providing a universal basic income.
encouraging free trade.
supporting unions.
12
Partners specialization within their own business is a reflection of..
imports.
absolute advantage.
comparative advantage.
exports.
13
A trade surplus means there is a ______ balance of trade.
equal
undetermined
positive
negative
14
The EU exports 200 million euros worth of goods, and imports 250 million euros worth of goods.
The EU has a budget deficit.
The EU has a budget surplus.
The EU has a trade deficit.
The EU has a trade surplus.
15
Trade will usually be mutually beneficial if one country has a...
comparative advantage.
absolute advantage.
monopoly.
tariff on imports.
16
An increase in Brazil's demand for US goods would cause the value of the USD to...
appreciate because the price level in the US would increase.
depreciate because the US would buy more Brazilian Real.
appreciate because Brazil would be selling more the the US.
appreciate because Brazil would buy more USD.
17
Which of the following is true about tariffs and quotas?
Tariffs limit imports, quotas raise prices on exports.
Tariffs raise prices exports, quotas limit exports.
Tariffs raise prices on imports, quotas limit imports.
Tariffs limit exports, quotas raise prices on imports.
18
If the Canadian Dollar decreased in value relative to the Chinese Yuan...
demand for Canadian Dollars must have increased in China.
there will be no change in relative prices.
Canadian cars will become more expensive in China.
Chinese cars will become more expensive in Canada.
19
Which of the following results in specialization, increased trade, and more output?
international tariffs
balance of payments
comparative advantage
absolute advantage
20
Exchange rates are used to determine...
the use of subsides on foreign goods.
the price of a nation's imports in terms of another's.
free trade agreements.
the price of a nation's currency in terms of another's.
21
The price of a country's currency in terms of another country's currency is called...
the exchange rate.
the discount rate.
monetary policy.
fiscal policy.
22
Countries that are economically interdependent and are effective trade partners...
exports products that the other must import.
have absolute advantage.
trade goods that either could produce on their own.
have a variety of goods and services.
23
Who would be likely critical of free trade?
a factory worker in a developing nation.
a US factory worker whose job was outsourced.
a US factory worker replaced by technology
a politician trying to increase US profits.
24
When the Euro falls compared to the United States Dollar, this means...
the value of USD is harder to measure.
it takes more Euros to equal a USD.
it takes more USD to equal a Euro.
the value of Euros is harder to measure.
25
Which of the following was created to make trade between its member countries easier?
North Atlantic Treaty Organization
International Finance Corportation
the United Nations
the European Union
26
Essentially, a ___________ imposes some cost on trade and raises the price of foreign goods.
trade barrier
trade surplus
trade incentive
trade deficit
27
NAFTA, the EU, and ASEAN were created for what specific purpose?
to defend against terrorism
to encourage free trade
to prevent another world war
to end hunger
28
When France has a trade deficit, this means..
France's imports exceed its exports.
France has absolute advantage in trade.
France has a lower GDP than its trade partners.
France has a net financial outflow.
29
When a nation's currency depreciations, one can expect that it's...
exports will fall.
imports will rise.
balance of trade to worsen.
balance of trade to improve.
30
All of the following are examples of trade restrictions EXCEPT...
quotas.
embargoes.
trade deficits
subsidies.
