ECONOMICS UNIT 4 TRADE

1. A nation’s ability to produce a product at a lower opportunity cost than another country is referred to as what?

• globalization

  
  

• foreign trade

• absolute advantage

• comparative advantage

1. In 1987, the United Nations General Assembly passed a resolution that prohibited countries from buying oil from South Africa. This was done to persuade South Africa to end the racist policies of apartheid. What is this an example of?

• embargo

  
  

• quota

• standard

• tariff

1. Cars imported into the United States must have certain safety features to be allowed on highways and roads. Which of the following trade barriers does this situation describe?

• embargo

  
  

• quota

• standards

• tariff

1. Which of the following would be a reason China would place a tariff on Canadian lumber?

• China is continuing its Free Trade policy with Canada.

• China is trying to protect its domestic lumber industry.

  
  

• China is seeking to lower the cost of lumber for its citizens.

  
  

•  China is able to offer its Chinese lumber at a lower cost than Canada.

1. What economic policy involves a government setting limits on the amount of a specific good that can be imported into the country?

• Free Trade Agreement

• Subsidy

• Quota

• Tariff

1. Which of the following best describes a situation where a country decides not to trade with another country for political reasons?

• Embargo

• Quota

• Subsidy

• Free Trade Agreement

1. When a government provides financial support to domestic producers to help them compete against foreign imports, what is this an example of?

• Quota

• Embargo

• Subsidy

• Tariff

1. What is the price of one nation's currency in terms of another nation's currency called?

• fiscal policy

  
  

• discount rate

• exchange rate

• monetary policy

1. When the United States dollar depreciates, which of the following is a likely effect?

• United States exports increase.

• United States imports increase.

• Travel abroad becomes more affordable.

• Japanese stop investing in American businesses.

Which of these is the MOST likely effect of a weak United States dollar?

• Travel abroad will become more affordable for Americans.

  
  

•  Foreigners will buy fewer United States goods and services.

  
  

• Foreign investment in United States businesses will decline.

• Goods imported from other countries will become more expensive.