Chapter 17-- Vocab Quiz
This is a vocabulary quiz over Chapter 17 in the Economics book. Chapter 17 is over International Trade. Good luck!
- 1.Absolute advantage
- A.
Difference between money paid to, and received from, other nations in trade; balance on current account includes goods and services, merchandise trade balance counts only goods.
- B.
A country's ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost.
- C.
A country's ability to produce more of a given product than another country.
- D.
System under which the value of currencies were fixed in relation to one another; the exchange rate system is effect until 1971.
- E.
None of the above.
- 2.Balance of payments:
- A.
Difference between money paid to, and received from, other nations in trade; balance on current account includes goods and services, merchandise trade balance counts only goods.
- B.
Person who would protect domestic producers with tariffs, quotas, and other trade barriers.
- C.
Limit on the amount of a good that can be allowed into a country.
- D.
Balance of payments outcome when spending on imports exceeds revenues received from exports.
- E.
None of the above.
- 3.When a country is able to produce a given product relatively more efficiently than another country with lower opportunity cost, it is referred to as:
- 4.Flexible exchange rates:
- A.
Situation occurring when the value of a nation's exports exceeds the value of its imports.
- B.
System under which the value of currencies were fixed in relation to one another; the exchange rate system is effect until 1971.
- C.
Tax on an imported product designed to protect less efficient domestic producers.
- D.
Foreign currencies used by countries to conduct international trade.
- E.
None of the above.
- 5.Foreign currencies used by countries to conduct international trade is referred to as:
- 6.Infant industries [argument]:
- A.
System under which the value of currencies were fixed in relation to one another; the exchange rate system is effect until 1971.
- B.
Tax placed on an imported product.
- C.
Index showing strength of the United States Dollar against a market basket of other foreign currencies.
- D.
Country's ability to produce more of a given product than another country.
- E.
None of the above.
- 7.Protectionist:
- A.
Argument that new and emerging industries should be protected from foreign competition until they are strong enough to compete.
- B.
Tax placed on imported goods to raise revenue.
- C.
Situation occurring when the value of a nation's exports exceeds the value of its imports.
- D.
Balance of payments outcome when spending on imports exceeds revenues received from exports.
- E.
None of these.
- 8.A limit on the amount of a good that can be allowed into a country is defined as a:
- 9.Revenue tariff:
- A.
Tax placed on imported goods to raise revenue
- B.
Balance of payments outcome when spending on imports exceeds revenues received from exports.
- C.
Tax placed on an imported product.
- D.
System under which the value of currencies were fixed in relation to one another; the exchange rate system is effect until 1971.
- E.
None of these.
- 10.Tariff:
- A.
Country's ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost.
- B.
Person who would protect domestic producers with tariffs, quotas, and other trade barriers.
- C.
Tax placed on an imported product
- D.
Index showing strength of the United States Dollar against a market basket of other foreign currencies.
- E.
None of these.
- 11.Trade deficit:
- A.
Tax on an imported product designed to protect less efficient domestic producers.
- B.
Balance of payments outcome when spending on imports exceeds revenues received from exports.
- C.
Difference between money paid to, and received from, other nations in trade; balance on current account includes goods and services, merchandise trade balance counts only goods.
- D.
Country's ability to produce more of a given product than another country.
- E.
None of these.
- 12.A _________ occurs when the value of a nation's exports exceeds the value of its imports.
- 13.Trade-weighted value of the dollar:
- A.
Index showing strength of the United States Dollar against a market basket of other foreign currencies.
- B.
Limit on the amount of a good that can be allowed into a country
- C.
Tax on an imported product designed to protect less efficient domestic producers.
- D.
Difference between money paid to, and received from, other nations in trade; balance on current account includes goods and services, merchandise trade balance counts only goods.
- E.
None of these.
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