7 - Unit 7 ECON: International Trade (FCHS 2024)

Question 1

The price at which a currency can be bought or sold is its:

Accepted Answer

Exchange Rate

Question 2

NAFTA proposed free trade between

Accepted Answer

the United States, Canada and Mexico

Question 3

If a nation does NOT have an absolute advantage in producing any good or service then it

Accepted Answer

has comparative adv in good it has lower opportunity cost

Question 4

An increase in Aggregate Demand (AD) would have what affect?

Accepted Answer

AD to shift right

Question 5

In order to charge a higher price for their good, a business usually tries to

Accepted Answer

differentiate their product

Question 6

This type of company has manufacturing or service operations in a number of countries

Accepted Answer

multinational

Question 7

Trade barrier where gov't gives $ to an industry to lower cost of good v cost of foreign good

Accepted Answer

subsidy

Question 8

All else constant, an incr in countries imports tends to cause the value of their currency to

Accepted Answer

appreciate b/c the world supply of that currency will rise

Question 9

The type of tax a company has to pay if it brings in products from a foreign country is a(an)

Accepted Answer

customs and duties tax

Question 10

Countries use trade barriers such as a tariff to protect...

Accepted Answer

inefficient industries

Question 11

Trade barrier where gov't requires foreign product to meet certain requirements

Accepted Answer

standards

Question 12

If the US Dollar appreciates against the Euro, who will benefit the most?

Accepted Answer

U.S. investors buying EU stocks.

Question 13

The difference between the value of goods and services exported and imported.

Accepted Answer

balance of trade

Question 14

The idea that it is hard to determine who will ultimately pay a tax placed on a business?

Accepted Answer

Incidence of a tax

Question 15

Overtime foreign goods more expensive compared to domestic goods is affect of what type barrier

Accepted Answer

tariff

Question 16

Trade organization made up of southeast Asian countries

Accepted Answer

ASEAN

Question 17

Trade barriers can have all of the following effects EXCEPT

Accepted Answer

promoting third-world development

Question 18

The U.S. has a positive trade balance with which area of the world

Accepted Answer

Australia, New Zealand, South Africa

Question 19

When exports are greater than imports there is a

Accepted Answer

trade surplus

Question 20

The U.S. has a $25 billion trade deficit with which area of the world

Accepted Answer

OPEC Members

Question 21

Which of the following is NOT a means to restrict international trade

Accepted Answer

trade deficit

Question 22

The total amount of goods and services demanded throughout the economy is

Accepted Answer

aggregate demand (AD)

Question 23

Social Security and Medicare are funded through

Accepted Answer

FICA

Question 24

Trade barrier where gov't doesn't allow companies to legally import goods from specific country

Accepted Answer

embargo

Question 25

According to the circular flow diagram above, where does the government spend tax dollars?

Accepted Answer

income to households & payments to businesses

Question 26

The ability of a country to produce relatively more efficiently is

Accepted Answer

comparative advantage

Question 27

If each country specializes in the commodity where it has a comparative adv & then trades

Accepted Answer

Both countries will become better off

Question 28

Local governments raise revenue through

Accepted Answer

property taxes

Question 29

(G&S = goods and services) Trade will MOST LIKELY take place when two countries

Accepted Answer

specialize in producing G&S where they have comparative adv

Question 30

Why do taxes adversely affect the allocation of resources in society?

Accepted Answer

gov't not the market decides how the money is to be spent

Question 31

Which barrier to trade that would most help a countries producers AND consumers

Accepted Answer

subsidy

Question 32

The ability of a nation to produce more of a given product than can another country, is a(n)

Accepted Answer

absolute advantage

Question 33

If exchange rate is 10 riyals per dollar, then a unit of oil with a price of $90 will cost:

Accepted Answer

900 riyals

7 - Unit 7 ECON: International Trade (FCHS 2024)

Questions 33

7 - Unit 7 ECON: International Trade (FCHS 2024)

Questions 33