Chapter 9 Reading Quiz
1. When the United States engages in international
trade with China,
O a. China reaps economic benefits and the
United States loses.
O b. both China and the United States reap
economic benefits.
O c. it is an equal tradeoff so neither country
benefits nor loses.
O d. China loses and the United States reaps
economic benefits.
2. Countries usually impose restrictions on free
foreign trade to
O a. protect foreign producers.
O b. protect foreign consumers.
O c. protect domestic producers.
O d. protect domestic consumers.
3. Trade among nations is ultimately based on
O a. absolute advantage.
O b. political advantage.
O c. comparative advantage.
O d. technical advantage.
4. Trade is beneficial because
O a. it creates jobs for middlemen.
O b. it creates jobs for shippers.
O c. it allows each nation to apply economic
pressure on other nations.
O d. it allows each nation to specialize in doing
what it does best.
5. Which of the following is NOT a benefit of trade?
O a. an increased variety of goods
O b. lower costs through economies of scale
O c. increased competition
O d. an ability to control domestic and world
prices
Name
Date
Period
6. A tariff is
O a. a tax on imported goods.
O b. a tax on exported goods.
O c. a limit on imported goods.
O d. a tax on luxuries.
7. A quota is
O a. a tax placed on imports.
O b. a limit on the quantity of imports.
O c. a tax on exports to other countries.
O d. an excess of exports over imports.
8. A tariff and an import quota will both
O a. increase the quantity of imports and raise
domestic price.
O b. increase the quantity of imports and lower
domestic price.
O c. reduce the quantity of imports and raise
domestic price.
O d. reduce the quantity of imports and lower
domestic price.
9. Which of the following is an argument for
restricting trade?
O a. Trade restrictions make all Americans better
off.
O b. Trade restrictions increase economic
efficiency.
O c. Trade restrictions are necessary for
economic growth.
O d. Trade restrictions are necessary for national
security.
10. Which of the following is NOT an argument for
restricting trade?
O a. the jobs argument
O b. the national security argument
O c. the infant-industry argument
O d. the efficiency argument
Chapter 9 Reading Quiz Key
1. When the United States engages in international
trade with China,
a. China reaps economic benefits and the
United States loses.
O b. both China and the United States reap
economic benefits.
c. it is an equal tradeoff so neither country
benefits nor loses.
d. China loses and the United States reaps
economic benefits.
2. Countries usually impose restrictions on free
foreign trade to
a. protect foreign producers.
b. protect foreign consumers.
O c. protect domestic producers.
d. protect domestic consumers.
3. Trade among nations is ultimately based on
a. absolute advantage.
b. political advantage.
O c. comparative advantage.
d. technical advantage.
4. Trade is beneficial because
a. it creates jobs for middlemen.
b. it creates jobs for shippers.
c. it allows each nation to apply economic
pressure on other nations.
O d. it allows each nation to specialize in doing
what it does best.
5. Which of the following is NOT a benefit of trade?
a. an increased variety of goods
b. lower costs through economies of scale
c. increased competition
O d. an ability to control domestic and world
prices
6. A tariff is
O a. a tax on imported goods.
b. a tax on exported goods.
c. a limit on imported goods.
d. a tax on luxuries.
7. A quota is
a. a tax placed on imports.
O b. a limit on the quantity of imports.
c. a tax on exports to other countries.
d. an excess of exports over imports.
8. A tariff and an import quota will both
a. increase the quantity of imports and raise
domestic price.
b. increase the quantity of imports and lower
domestic price.
O c. reduce the quantity of imports and raise
domestic price.
d. reduce the quantity of imports and lower
domestic price.
9. Which of the following is an argument for
restricting trade?
a. Trade restrictions make all Americans better
off.
b. Trade restrictions increase economic
efficiency.
c. Trade restrictions are necessary for
economic growth.
O d. Trade restrictions are necessary for national
security.
10. Which of the following is NOT an argument for
restricting trade?
a. the jobs argument
b. the national security argument
c. the infant-industry argument
O d. the efficiency argument