International Economics

Question 1 Foreign Exchange refers to A. Diplomatic meetings of heads of state C. International trade between nations B. Political Borders and their Effects 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 C. Increased employment opportunities for Americans B. Worldwide recessions D. The value of the dollar to fall in foreign exchange markets

Question 3 Protectionist Favor A. High tariffs against competition C. Low standards of purity for food products B. Having fewer exports than imports 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 C. Consumers benefit because imports are cheaper and Producers lose because of the competition B. It means that the United States will not import that good from any other country D. Producers benefit

Question 5 A comparative advantage means a nation A.Has a monopoly on one good or service C. Can produce a product at a lower opportunity cost than another country B. Should abandon production 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 C. Having exports greater in value than imports B. Having fewer exports than imports D. Exporting without importing

Question 7 NAFTA proposed free trade between the United States and A. Brazil and Mexico C. The European Union B.Canada and Mexico D. Canada and Central America

Bonus Question What is an argument against protectionism? A. Better Standards C. Protecting Jobs B.It inflates prices D. Embargos are good for political stability

End of quiz

Key 1) C 2) D 3) A 4) CBonus Answer: B 5) C 6) C 7) B