Unit 5- Final Exam

A ________ takes a larger percentage of income from higher income groups than from lower income groups.

• Progressive Tax

• Regressive Tax

• Protective Tariff

• Bond

A nation has an ______ when it can make more of a product than another country can.

• Protective Tariff

• Commercial Treaty

• Absolute Advantage

• Comparative Advantage

The United States and its allies formed ______ in 1949 to establish a united front against aggression by the Soviet Union and its communist allies.

• NAFTA

• NATO

• United Nations

• World Trade Organization

After WWII, in 1945, representatives from 50 countries met to form the _____, an organization that promotes peaceful coexistence and worldwide cooperation.

• NAFTA

• NATO

• United Nations

• World Trade Organization

A _____ is a certificate stating that the government has borrowed a certain sum of money from the owner of the bond.

• Fines

• Fees

• NAFTA

• Bond

____ are payments charged by governments for various licenses.

• Fees

• Fines

• Progressive Taxe

• Regressive Tax

____ allowed for free trade between Canada, the United States, and Mexico.

• International Monetary Fund

• NATO

• NAFTA

• World Trade Organization

If the United States makes a product more efficiently than any other country, it has an __________.

• Absolute Advantage

• Comparative Advantage

• International Monetary Fund

• Regional Trade Agreement

The United States uses tariffs primarily to regulate _____ rather than to raise money because tariffs raise the price of imported goods.

• Domestic Trade

• Foreign Trade

• Imports

• Taxes

________ agreements eliminate trade barriers between neighboring countries.

• Defensive Alliances

• Free Trade

• Reciprocal Trade Agreements

• Regional Trade Agreements