Trade Exchange And Interdependence Quiz 20 (20 MCQs)

Quiz Instructions

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1. Underdeveloped nations tend to trade what type of goods?

Correct Answer: A) Low skill products.

2. What has been a major success of the European Union (EU) in recent years?

Correct Answer: D) The elimination of trade barriers.

3. During the rule of the Song Dynasty, the population grew and new cities sprang up around China. What invention allowed trade to increase?

Correct Answer: B) Paper money.

4. Purpose:To make imported goods more expensive

Correct Answer: B) Tariff.

5. An association of 12 member nations of southeast Asia to promote economic growth, free trade and economic collaboration between member nations.

Correct Answer: A) ASEAN.

6. If Panama decides to stop trading with Venezuela because of oil spills and oil pollution, what kind of trade barrier would be placed on Venezuela?

Correct Answer: C) Embargo.

7. The positive results of globalization include:

Correct Answer: D) All of the above.

8. To prevent too much of a good from entering a country

Correct Answer: A) Quota.

9. When determining comparative advantage one must determine

Correct Answer: A) Opportunity cost.

10. A limit on the number of cars that can be brought into the country

Correct Answer: A) Import quota.

11. Tariffs and Quotas can benefit nations imposing them by .....

Correct Answer: A) Raising revenue.

12. Consignment can be refer to

Correct Answer: B) Shipments of goods are arranged under agreement that payment be made after goods are sold by a specified period.

13. Making use of something in an unfair manner

Correct Answer: B) Exploitation.

14. Which of these is an example of a good?

Correct Answer: C) Trendy jeans.

15. Measures the price of one nation's currency in terms of another nation's currency

Correct Answer: B) Exchange rates.

16. The process of ..... money from one country to that of another country is necessary because not all countries use the same type of money.

Correct Answer: C) Converting.

17. A grant of money, special loans, specially priced insurance, and so on from a government to a business

Correct Answer: B) Subsidy.

18. What determines the value of a currency?

Correct Answer: C) The Market-Supply and Demand.

19. Choose true to receive credit for this question.

Correct Answer: A) True.

20. The ability to produce a good or service at a lower opportunity cost than another country

Correct Answer: C) Comparative advantage.