When a nation imports more than it exports, how does it affect the GDP?

GDP is reduced because (X-M) is negative

When a currency is "fixed,"

It's tied to another nation's currency or to precious metals

Which is *NOT* a reason a country might impose a tariff?

Make its own exports cheaper to others

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Economics - Ch. 16 and Ch. 17 review

18 termsStudBud Administration102 plays

Preparation for exam on Ch. 16 and Ch. 17 of Glencoe's "Economics - Principles and Practices."

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Questions 18

Answers

1
A "weak currency" results in ____ imports and _____ exports
More Expensive; More Expensive
Cheaper; Cheaper
More Expensive; Cheaper
Cheaper; More expensive
2
A __ is a group of countries who eliminate trade barriers, & have a common foreign trade policy
Customs Union
Economic federation
Free trade area
Global Trade Organization
3
Some nations put up many barriers to trade, often to benefit weak domestic industries. This is
Domestic advantage
Economic Exclusion
Unfair trade
Protectionism
4
What economic organization replaced the General Agreement on Tariffs and Trade?
The World Trade Organization
North American Free Trade Agreement
The European Union
Association for Southeast Asian Nations (ASEAN)
5
When a nation imports more than it exports, how does it affect the GDP?
GDP is increased due to a larger quantity of available goods
GDP is reduced because (X-M) is negative
There is no effect due to balance of payments
It is reduced because prices of goods in that nation fall
6
During the Great Depression, this Act raised tariffs to the highest levels in U.S. history
Gramm-Rudman
McCain-Feingold
Hawley-Smoot
Goldwater-Nichols
7
Governments can restrict the amount of a good that can be imported into the country. This is a
Fair Trade provision
Quota
Trade block
Quality control measure
8
The Internat'l Development Association makes ___ ___ without interest to developing nations.
Micro loans
Developmental loans
Investment loans
Soft loans
9
At which stage of development does a country's GDP grow faster than its population
Transition
Takeoff
Highly developed
Semi-developed
10
A ___ is a group of countries who agree to minimize barriers to trade
Customs Union
Global Trade Organization
Free trade area
Economic federation
11
When a currency is "fixed,"
It has recovered from an episode of hyperinflation
It is able to respond to changes in demand
It can no longer be converted into precious metals
It's tied to another nation's currency or to precious metals
12
At which stage of economic development do people start questioning traditional practices?
Takeoff
Highly Developed
Semi-developed
Transition
13
When a nation can produce a good/service at a lower opportunity cost than other nations, it has
A comparative advantage
An efficiency advantage
An absolute advantage
A trade advantage
14
How did many former communist nations privatize their economies into market systems?
Voucher system
Random drawing
Another nation oversaw the distribution of State assets
Public auction
15
If a country can produce a greater quantity of a good than any other, it has
A trade surplus
Absolute Advantage
Comparative Advantage
A trade deficit
16
Which is *NOT* a reason a country might impose a tariff?
Raise revenue
Protect domestic industry
Express displeasure with another country's actions
Make its own exports cheaper to others
17
Which is *NOT* a barrier to economic development?
Capital flight and "Brain Drain"
Corruption
A small population
Disease and Substance abuse
18
When a nation imports more than it exports, it has
A positive balance of payments
A trade surplus
Unrestricted trade
A trade deficit

Economics - Ch. 16 and Ch. 17 review Flashcards | StudBud