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Unit 2
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The ____ is the difference between the value
of a nation’s exports and its imports.
a. trade surplus
b. balance of trade
c. exchange rate
d. trade barrier
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____ is a country’s ability to produce a good
at a lower opportunity cost than another
country can.
a. Quota
b. Tariff
c. Comparative advantage
d. Productive capacity
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The WTO is an international organization that
a. institutes trade barriers.
b. sets discount rates.
c. oversees trade.
d. sets the exchange rate.
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This organization allows for the free
movement of goods, services, and workers
among 15 countries.
a. EU
b. WTO
c. WWF
d. NAFTA
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What is the name for a system in which
private citizens own the factors of
production?
a. mixed economy
b. traditional economy
c. command economy
d. market economy
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____ goods give Americans access to products
they might not have otherwise been able to
enjoy.
a. Imported
b. Exported
c. Quota
d. Domestic
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A small percentage of goods produced in the
United States are ____, or sold to other
countries.
a. exported
b. tariffed
c. traded
d. imported
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What combines basic elements of a pure
market economy and a command economy?
a. traditional economy
b. mixed economy
c. market economy
d. command economy
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____ is the belief that the means of
production should be owned by society,
either directly or through the government.
a. Capitalism
b. Fascism
c. Socialism
d. Communism
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A ____, or customs duty, is a tax on an
imported good.
a. quota
b. tariff
c. trade barrier
d. restriction
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What eliminated all trade barriers among the
United States, Canada, and Mexico?
a. NAFTA
b. WTO
c. NASCAR
d. EU
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Which of the following is a result of a trade
deficit?
a. communism fails
b. trade is balanced
c. the currency gains value
d. the currency loses value
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The ____ is the price of one nation’s currency
in terms of another nation’s currency.
a. currency trade
b. exchange rate
c. currency rate
d. free trade
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What is a limit placed on the amount of
foreign goods imported?
a. tariff
b. key trade
c. sanction
d. quota
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A country has a trade ____ when the value of
the products it imports exceeds the value of
the products it exports.
a. surplus
b. barrier
c. deficit
d. balance
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What is the belief in a classless, ungoverned
society in which property would all be held in
common?
a. capitalism
b. socialism
c. communism
d. fascism
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A ____ is a system in which the major
economic decisions are made by the central
government.
a. mixed economy
b. traditional economy
c. command economy
d. market economy
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This measure expresses GDP in terms of each
person in a country.
a. per capita GDP
b. real GDP
c. balanced GDP
d. market GDP
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What term refers to a system in which things
are done “the way they have always been
done.”
a. mixed economy
b. command economy
c. market economy
d. traditional economy
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____ refers to convincing countries not to
pass laws that block or limit trade.
a. Free trade
b. Market economy
c. Developing economy
d. Economic diplomacy