World Of Trade Vocabulary Test

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| By Samson Jr.

Samson Jr.

Community Contributor

Quizzes Created: 1 | Total Attempts: 663

Questions: 16 | Attempts: 663 | Updated: Mar 21, 2023

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Answer each question in the space provided.

Questions and Answers

1.

An exchange of goods or services.
- A.
  
  Trade
- B.
  
  Imports
- C.
  
  Export
- D.
  
  Market
Correct Answer
A. Trade

Explanation
Trade refers to the exchange of goods or services between two or more parties. It involves the buying and selling of goods or services, either within a country or between different countries. Trade plays a crucial role in the economy as it allows countries to access goods and services that they may not produce themselves, and it also promotes economic growth and development. Trade can take place through various channels such as barter, where goods are exchanged directly, or through monetary transactions. Overall, trade is essential for the functioning of the global economy.

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2.

Place where trade occurs.
- A.
  
  Quota
- B.
  
  Standard
- C.
  
  Market
- D.
  
  Trade
Correct Answer
C. Market

Explanation
A market is a place where trade occurs. It is a physical or virtual location where buyers and sellers come together to exchange goods, services, or financial assets. In a market, prices are determined through the interaction of supply and demand. Buyers and sellers negotiate and make transactions based on their needs and preferences. Therefore, the correct answer is market.

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3.

People who buy products or services.
- A.
  
  Producers
- B.
  
  Consumers
- C.
  
  Embargo
- D.
  
  Subsidy
Correct Answer
B. Consumers

Explanation
Consumers refers to people who purchase products or services. They are the end-users of goods and services in the market. They play a vital role in the economy as their demand drives production and influences the decisions of producers. Consumers have the power to choose between different products and services, based on their preferences, needs, and budget. Their purchasing behavior and patterns greatly impact businesses and the overall market. Therefore, the correct answer for this question is "Consumers."

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4.

A regulation or law that slows or prevents trading with another nation.
- A.
  
  Tariff
- B.
  
  Quota
- C.
  
  Producer
- D.
  
  Trade Barrier
Correct Answer
D. Trade Barrier

Explanation
A trade barrier refers to a regulation or law that hinders or restricts trading activities between nations. It can take various forms, such as tariffs, quotas, or other restrictions on imports or exports. Trade barriers are implemented for various reasons, including protecting domestic industries, ensuring national security, or addressing trade imbalances. By imposing trade barriers, a country can control the flow of goods and services across its borders and influence the level of trade with other nations.

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5.

A belief that products should be free to move from country to country without barriers.
- A.
  
  Free Trade
- B.
  
  Import
- C.
  
  Export
- D.
  
  Emigrate
Correct Answer
A. Free Trade

Explanation
Free trade refers to the belief that products should be able to move freely between countries without any barriers or restrictions. This means that there should be no tariffs, quotas, or other trade barriers imposed on imports and exports. Free trade promotes economic growth, encourages competition, and allows countries to specialize in producing goods and services that they have a comparative advantage in. It also provides consumers with a wider variety of products at lower prices. Overall, free trade aims to promote global economic integration and cooperation among countries.

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6.

Define Domestic Trade.

Correct Answer
An exchange of goods or services with people and businesses in you own country.

Explanation
The correct answer defines domestic trade as the exchange of goods or services within one's own country. This means that individuals and businesses engage in buying and selling activities with others located within the same country. Domestic trade is important for the economy as it promotes local businesses, creates job opportunities, and contributes to the overall growth and development of the country.

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0
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7.

Define International Trade.

Correct Answer
An exchange of goods or services with people and businesses in other countries.

Explanation
The correct answer is a concise and accurate definition of international trade. International trade refers to the buying and selling of goods or services between countries. It involves the exchange of products and services across national borders, allowing countries to access resources, expand markets, and benefit from comparative advantages. This definition captures the essence of international trade by highlighting the involvement of people and businesses from different countries in the exchange process.

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8.

Define Import.

Correct Answer
A good or service bought from another country.

Explanation
The term "import" refers to the act of purchasing a good or service from a different country. This involves bringing in products or services from abroad to be used or sold domestically. Imports play a crucial role in international trade, allowing countries to access goods or services that may not be available or produced domestically. By importing, countries can diversify their markets, obtain resources or products at a lower cost, and stimulate economic growth.

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9.

Define Export.

Correct Answer
A good or service sold to another country.

Explanation
The term "export" refers to the act of selling a good or service to a different country. This involves the transfer of goods or services across international borders, typically for the purpose of trade and economic exchange. By exporting products, businesses can expand their market reach and tap into new opportunities in foreign markets. Additionally, exports contribute to a country's economy by generating revenue, creating jobs, and promoting economic growth.

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1
4 1
10.

Define Culture.

Correct Answer
The way of life of a group of people who share traditions, interests, beliefs, and everyday activities.

Explanation
The answer provided accurately defines culture as the way of life of a group of people who share traditions, interests, beliefs, and everyday activities. Culture encompasses various aspects such as language, art, music, customs, and social behaviors that are shared and passed down within a community. It shapes individuals' identities, values, and behaviors, and plays a significant role in shaping societies and promoting social cohesion.

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11.

Define Quota.

Correct Answer
A control on the amount of a product that can be imported into a country.

Explanation
The correct answer defines a quota as a control on the amount of a product that can be imported into a country. This means that a quota sets a limit on the quantity of a specific product that can be brought into a nation from abroad. Quotas are often implemented by governments to protect domestic industries and regulate international trade. By restricting imports through quotas, countries can manage their trade balance, protect local businesses, and promote domestic production.

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12.

Define Tariff.

Correct Answer
A tax on a good imported into a country.

Explanation
The correct answer is a tax on a good imported into a country. A tariff is a form of tax imposed on goods that are imported into a country. It is usually implemented to protect domestic industries and businesses by making imported goods more expensive, thereby encouraging consumers to purchase domestically produced goods. Tariffs can also be used as a tool for regulating trade and balancing the economy.

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13.

Define Standard

Correct Answer
A requirement that stops or limits the sale of a product not meeting certain specifications.

Explanation
The correct answer is a concise and accurate definition of a standard. It states that a standard is a requirement that restricts or prevents the sale of a product that does not meet specific specifications. This definition highlights the purpose of a standard, which is to ensure that products meet certain quality or safety criteria before they can be sold to consumers.

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14.

Define Currency.

Correct Answer
A nation's money.

Explanation
Currency refers to the official form of money used by a particular nation. It represents the medium of exchange that is widely accepted within a country for buying goods and services, as well as settling debts. Currency can take the form of physical notes and coins, as well as digital or electronic forms of payment. It is regulated by the government or central bank of a nation and plays a crucial role in facilitating economic transactions and maintaining financial stability within the country.

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15.

Define Exchange Rate.

Correct Answer
The price of one nation's currency in terms of another nation's currency.

Explanation
The exchange rate refers to the value at which one country's currency can be exchanged for another country's currency. It represents the price of one nation's currency in terms of another nation's currency. This rate is determined by various factors such as supply and demand, interest rates, inflation, and economic stability. The exchange rate plays a crucial role in international trade and finance, as it affects the cost of imports and exports, tourism, and investment.

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16.

Explain the difference between a person who is an Emigrant and Immigrant.

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Current Version
Mar 21, 2023

Quiz Edited by
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Apr 14, 2010

Quiz Created by
Samson Jr.

World Of Trade Vocabulary Test

An exchange of goods or services.

Place where trade occurs.

People who buy products or services.

A regulation or law that slows or prevents trading with another nation.

A belief that products should be free to move from country to country without barriers.

Define Domestic Trade.

Define International Trade.

Define Import.

Define Export.

Define Culture.

Define Quota.

Define Tariff.

Define Standard

Define Currency.

Define Exchange Rate.

Explain the difference between a person who is an Emigrant and Immigrant.