Ch 17 Quiz: Trade

Goods and services produced in other countries and sold domestically are called __________.

• imports

• exports

Goods and services produced domestically and sold in other countries are called _____________.

• imports

• exports

__________ is a country’s ability to produce more of a given product than another country.

• Comparative advantage

• Absolute advantage

• Specialization

• Globalization

__________ is a country’s ability to produce a given product relatively more efficiently than another country.

• Comparative advantage

• Absolute advantage

• Specialization

• Globalization

Trade is mutually beneficial.

• True

• False

Comparative advantages involves having the most opportunity cost.

• True

• False

What is a tax paid on imports?

• Tariff

• Embargo

• Subsidy

• Quota

What is a limit on imports?

• Export

• Quota

• Embargo

• Subsidy

A government payment to a domestic producer to help reduce production costs is an example of _________.

• Tariff

• Quota

• Embargo

• Subsidy

Select all trade barriers.

• Quota

• Revenue

• Embargo

• Tariff