Unit 2BC Test Practice

a trade barrier that discourages trade by placing a tax on foreign goods

• embargo

• quota

• tariff

a trade barrier that completely stops trade between two countries

• embargo

• quota

• tariff

• currency exchange

a trade barrier that limits the number of imported items

• embargo

• quota

• tariff

A literate person in a developed country is most likely to have all EXCEPT:

• health care

• technology

• a high paying job

• uneducated children

What is the currency for MOST European Union Countries?

• Euro

• Dollar

• Franc

• Pound

How does the literacy rate affect the standard of living in a country?

• Literacy does not affect the standard of living.

• A country with a low literacy rate will have a high standard of living.

• The literacy rate is one factor that can increase a country’s standard of living.

• A country with a high literacy rate will have a low standard of living.

Which explains a reason for the creation of the European Union?

• to isolate Russia and make it difficult to trade

• to make Europe more competitive in world markets and solve common problems

• to promote the French franc as a common currency in Europe

• to practice reaching consensus among European countries

If the president’s plan is to improve the economy by giving incentives to companies who provide technology education and training for employees, he would be basing his plan on the conclusion that:

• an investment in human capital will increase a country’s gross domestic product (GDP)

• adjusting the exchange rate will increase the profit the country makes in international trade

• an investment in capital goods will increase the country’s gross domestic product (GDP)

• an embargo on technology from other countries will help the economy

If the president’s plan is to improve the economy by giving incentives to companies who invest in new computers and wireless communications systems, he would be basing his plan on the conclusion that:

• an investment in human capital will increase a country’s gross domestic product (GDP)

• adjusting the exchange rate will increase the profit the country makes in international trade

• an investment in capital goods will increase the country’s gross domestic product (GDP)

• an embargo on technology from other countries will help the economy

Which is NOT a barrier to trade?

• quotas

• tariffs

• embargoes

• common currencies