Quiz 2

What is the difference between a trade surplus and a trade deficit?

• Trade surplus occurs when a country imports more than it exports 

   

• Trade deficit occurs when a country has higher taxes than expenses  

• Trade surplus occurs when a country exports more than it imports 

• Trade deficit occurs when a country exports more than it imports

Which is considered by most people to be more “favorable”?

• Trade deficit

• Trade surplus

• Zero trade

• Balanced trade

Which is most likely to occur when the dollar DEPRECIATES? 

• Less trade 

• More imports 

• More exports 

• More debt 

 

Which is most likely to help increase EXPORTS from the US? 

• Depreciate of the US dollar 

• Appreciation of the US dollar 

• Increased trade barriers 

• Higher import standards

 

Which trade barrier is a type of tax on imports? 

• Tariffs 

• Quotas 

• Standards 

• Embargos 

Which trade barrier is more likely to be used as a political tactic to pressure a country to change its laws? 

• Tariff 

• Quota 

• Standard 

• Embargo 

Which action of the US government is most likely to help CONSUMERS in the US? 

• Quotas on foreign goods  

• Standards on foreign goods 

• Tariffs on foreign goods 

• Embargos on foreign countries

When two countries each have a comparative advantage, then… 

•  

   

  They can make everything they need 

• They don’t need to trade

• They should trade

• They are economically well-off 

The German government has decided to lift trade barriers on US cars.  Who would NOT like this action? 

• US auto manufacturers 

• German consumers

• German auto manufacturers 

• US consumers

What is the result of international trade? 

• More expensive goods 

• Fewer goods 

   

• Lower quality goods

• Greater variety of goods