International Economics
Question 1
Foreign Exchange refers to
A. Diplomatic meetings of
heads of state
B.
Political Borders and
their Effects
C. International trade
between nations
D.
All forms of
international
negotiations
Question 2
The United States trade deficit causes
A. The value of the dollar
to strengthen in
foreign exchange
markets
B.
Worldwide recessions
C. Increased employment
opportunities for
Americans
D.
The value of the
dollar to fall in foreign
exchange markets
Question 3
Protectionist Favor
A. High tariffs against
competition
B.
Having fewer exports
than imports
C. Low standards of
purity for food
products
D.
Exporting without
importing
Question 4
How does a strong dollar effect a
country’s consumers and producers?
A. It means that there
will be no taxes on
goods they import to
the United States
B.
It means that the
United States will not
import that good from
any other country
C. Consumers benefit
because imports are
cheaper and Producers
lose because of the
competition
D.
Producers benefit
Question 5
A comparative advantage means a
nation
A. Has a monopoly on
one good or service
B.
Should abandon
production
C. Can produce a product
at a lower opportunity
cost than another
country
D.
Should levy a
progressive tax on
imports
Question 6
A positive balance of trade or trade
surplus refers to
A. The difference
between the money
paid to foreign
producers and the
money received from
foreign buyers
B.
Having fewer exports
than imports
C. Having exports greater
in value than imports
D.
Exporting without
importing
Question 7
NAFTA proposed free trade between
the United States and
A. Brazil and Mexico
B.
Canada and Mexico
C. The European Union
D.
Canada and Central
America
Bonus Question
What is an argument against
protectionism?
A. Better Standards
B.
It inflates prices
C. Protecting Jobs
D. Embargos are good for
political stability
End of quiz
Key
•
•
•
•
•
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1)
2)
3)
4)
5)
6)
7)
C
D
A
C
C
C
B
Bonus Answer: B