Business Chapter 6

25 Questions
Business Quizzes & Trivia

Mulitble choice

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Questions and Answers
  • 1. 
    Computers that are manufactured in the United State and sold in Norway are categorized as U.S. __________.
    • A. 

      Imports

    • B. 

      Exports

    • C. 

      International trade

    • D. 

      Outsourcing

  • 2. 
    During the past decade, the value of both U.S. imports and exports has ________.
    • A. 

      Decreased

    • B. 

      Remained about the same

    • C. 

      More than doubled

    • D. 

      Risen slightly

  • 3. 
    Los Angeles-based PMI Telecom buys cell phones manufactured in Asia and sells them in the United States. PMI is engaging in the international business activity known as ________.
    • A. 

      Dumping

    • B. 

      Exporting

    • C. 

      Counter trade

    • D. 

      Importing

  • 4. 
    Importing is defined as ________.
    • A. 

      Selling goods that have been produced exclusively for other countries

    • B. 

      Buying goods that have been made domestically

    • C. 

      Buying foreign goods, raw materials, and services

    • D. 

      Selling goods abroad at a price lower than that charged in the domestic market

  • 5. 
    A large part of the U.S. economy’s growth comes from __________.
    • A. 

      Petroleum exports

    • B. 

      The import of goods and services

    • C. 

      The export of goods and services

    • D. 

      Production of consumer electronic products

  • 6. 
    Over the past decade, which of the following countries had the highest annual rate of GDP growth?
    • A. 

      United States

    • B. 

      China

    • C. 

      Canada

    • D. 

      Japan

  • 7. 
    • A. 

      United States

    • B. 

      India

    • C. 

      China

    • D. 

      Japan

  • 8. 
    Which of the following countries ranks high in terms of both population and wealth?
    • A. 

      United States

    • B. 

      Japan

    • C. 

      Germany

    • D. 

      France

  • 9. 
    A comparative advantage in a good or service means that ________.
    • A. 

      Compared to another country, a nation can produce it more cheaply

    • B. 

      The nation with the comparative advantage has a monopoly on the good or service

    • C. 

      A nation must be the absolute best at producing something

    • D. 

      Compared to another good or service, a nation will produce the one that it produces most efficiently

  • 10. 
    Japan has maintained a(n) __________ in the production of electronics due to technological expertise.
    • A. 

      Comparative advantage

    • B. 

      Absolute advantage

    • C. 

      Balance of trade

    • D. 

      Favorable exchange rate

  • 11. 
    The hypothetical country Uzambia is the sole world supplier of Boronite. Uzambia has ________.
    • A. 

      A floating exchange rate

    • B. 

      An absolute advantage in marketing the item

    • C. 

      A favorable balance of trade

    • D. 

      A comparative advantage in marketing the item

  • 12. 
    The country Artesia exported products totaling $86 billion last year, Artesia imported products valued at $43 billion. Artesia has a(n) _________.
    • A. 

      Exchange rate of 2 to 1

    • B. 

      Trade deficit of $43 billion

    • C. 

      Trade surplus of $43 billion

    • D. 

      Unfavorable balance of payments

  • 13. 
    A trade deficit occurs when __________.
    • A. 

      Import exceed exports

    • B. 

      Foreign-aid payments exceed exports

    • C. 

      Imports are sold at low profits

    • D. 

      There is a net flow of money into a country

  • 14. 
    Measured in dollor values, the U.S. imports more ________ than any other good.
    • A. 

      Crude oil

    • B. 

      Automobiles and trucks

    • C. 

      Electrical machinery

    • D. 

      Agricultural products

  • 15. 
    A leading U.S. export is _________.
    • A. 

      Clothing

    • B. 

      Movies

    • C. 

      Coffee

    • D. 

      Petroleum

  • 16. 
    A balance of payments surplus means ___________.
    • A. 

      An overall in flow of lone from abroad

    • B. 

      An overall outflow of money to other countries

    • C. 

      That imports exceed exports

    • D. 

      That exports exceed imports

  • 17. 
    Allison, a U.S. citizen, travels to the Far East and spends $2000 on souvenirs. She is contributing to the _________.
    • A. 

      U.S. trade surplus

    • B. 

      U.S. balance of payments deficit

    • C. 

      International trade war

    • D. 

      Growing exchange rate

  • 18. 
    A country’s exchange rate is based on ____________.
    • A. 

      The rate at which its currency can be exchanged for other currencies

    • B. 

      The number of foreign banks it has

    • C. 

      Tariffs and related trade restrictions

    • D. 

      The relationship between its imports and exports

  • 19. 
    Northumberland, a small European country, reduces the value of its currency. This reduction is known as _____________.
    • A. 

      Outsourcing

    • B. 

      Counter trade

    • C. 

      An exchange cut

    • D. 

      Devaluation

  • 20. 
    Which of the following groups is likely to be hurt economically if the value of the U.S. dollar rises relative to the euro?
    • A. 

      American tourists visiting Europe

    • B. 

      European firms exporting goods to the U.S

    • C. 

      American farmers exporting goods to Europe

    • D. 

      American firms with euro dominated loans

  • 21. 
    The price of imported goods is increased through ______________.
    • A. 

      Revaluation of a nation’s currency

    • B. 

      Devaluation of a nation’s currency

    • C. 

      Free trade

    • D. 

      The upward adjustment of a country’s exchange rate

  • 22. 
    A country has a good chance of selling more of its goods abroad if it _________.
    • A. 

      Reevaluates its currency

    • B. 

      Sends more tourists abroad

    • C. 

      Devalues its currency

    • D. 

      Sets high tariffs on imported goods

  • 23. 
    Assume the value of the U.S. dollar falls relative to the Japanese yen. Which of the following would benefit?
    • A. 

      U.S. visitors to Japan

    • B. 

      U.S. firms with yen denominated loans

    • C. 

      Japanese exporters

    • D. 

      Japanese visitors to the U.S.

  • 24. 
    All of the following are social and cultural barriers EXCEPT
    • A. 

      Language

    • B. 

      Gift-giving traditions

    • C. 

      Religious attitudes

    • D. 

      Currency shifts

  • 25. 
    Measured in terms of the percentage of households, which of the following has the lowest rate of cell phone use?
    • A. 

      Hong Kong

    • B. 

      Great Britain

    • C. 

      United States

    • D. 

      Finland