Chapter 17-- Vocab Quiz

13 Questions | Total Attempts: 69

SettingsSettingsSettings
Chapter 17-- Vocab Quiz - Quiz

This is a vocabulary quiz over Chapter 17 in the Economics book. Chapter 17 is over International Trade. Good luck!


Questions and Answers
  • 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.

Back to Top Back to top