Name: __________________________________________
Date: _______________
Quiz name: International EOC Review
1.
Based on the table, which development MOST LIKELY occurred between 2000 and 2003?
A
The United States increased tariffs on European nations that
used the euro in international trade.
B
The United States increased its money supply to encourage the
export of goods to nations that used
the European euro.
C
U.S. exporters found it increasingly difficult to find markets in
nations that used the European euro.
D
European consumers who used the euro purchased U.S.
exports at increasingly lower prices.
2.
The calculation of a country’s balance of trade involves the value of its
A
exports and imports
B
net exports and gross domestic product
C
foreign exchange rate and discount rate
D
foreign investments and investments by foreigners
3.
Which statement BEST supports the argument that countries should engage in free trade?
A
Free trade encourages less wealthy countries to develop mixed market economies.
B
Free trade eliminates the need for exporters to pursue greater comparative advantages.
C
Free trade eliminates the need for importers to rely on absolute advantages.
D
Free trade encourages countries to allocate their resources more efficiently.
4.
What is the primary purpose of the North American Free Trade Agreement (NAFTA)?
A
to reduce trade barriers among the United States, Canada, and Mexico
B
to decrease quotas but increase tariffs among the member countries
C
to establish trade policy between the member countries and the rest of the world
D
to counter the establishment of the European Union
5.
If the United States has a balance of trade deficit with China, it means that
A
the U.S. imports more products from China than it exports to China.
B
the U.S. exports more products to China than it imports from China.
C
U.S. dollars are more valuable in China than the Chinese currency is in the U.S.
D
American companies are investing more in their operations in China than China is investing in the
United
Which generalization is the MOST accurate comparison of absolute advantage and comparative
advantage?
6.
A
A nation can have either an absolute advantage or a comparative advantage in production, but not
both
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B
A nation can have an absolute advantage without having a comparative advantage in production
C
A nation that has an absolute advantage will automatically have a comparative advantage in
production
D
A nation that has a comparative advantage will automatically have an absolute advantage in
production
7.
Which of the following trade barriers involves NOT trading any goods with a country?
A
quota
B
tariff
C
embargo
D
subsidy
8.
Which of these is a tax placed on goods that are imported or exported?
A
embargo
B
subsidy
C
tariff
D
quota
9.
According to the information, one U.S. dollar
A
can be exchanged for more Japanese yen than Indian rupees.
B
can be exchanged for approximately two U.K. pounds.
C
is worth more Canadian dollars than Indian rupees.
D
is worth less than one Japanese yen.
10.
If the value of the currency of Country X depreciates, or lowers, the MOST LIKELY result is
A
Country X will increase imports and decrease exports.
B
the nation's imports are less expensive for domestic buyers.
C
the nation's exports are more affordable in the global market place.
D
the currency of Country X will be pegged, or fixed, instead of free-floating.
Keisha traveled to Canada and took $100 in U.S. currency. When Keisha exchanged the $100 for an
equivalent sum in Canadian dollars, she received about
11.
12.
A
33 Canadian dollars
B
66 Canadian dollars
C
100 Canadian dollars
D
150 Canadian dollars
The table represents the number ofbushels of wheat and rice that the UnitedStates and China can
produce in one day (numbers are in thousands).
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A
The United States has an absolute advantage in the production
of wheat, and China has an absolute advantage in the
production of rice.
B
The United States has an absolute advantage in the production
of rice, and China has an absolute advantage in the production
of wheat.
C
China has an absolute advantage in the production of both
wheat and rice.
D
The United States has an absolute advantage in the production
of both wheat and rice.
13.
Trade between nations can be mutually beneficial if one country has
A
a monopoly.
B
an absolute advantage.
C
a comparative advantage.
D
a protective tariff on imports.
14.
The difference between money paid to, and received from, other nations in trade is the
A
balance of trade.
B
absolute advantage.
C
balance of payments.
D
comparative advantage.
15.
Which statement BEST reflects the difference between tariffs and quotas?
A
Tariffs raise prices on exports, while quotas set limits on imports.
B
Tariffs raise prices on imports, while quotas set limits on exports.
C
Tariffs raise prices on exports, while quotas set limits on exports.
D
Tariffs raise prices on imports, while quotas set limits on imports.
16.
The price of one nation's currency in terms of another nation's currency is called
A
fiscal policy.
B
monetary policy.
C
the exchange rate.
D
the discount rate.
17.
Tariffs, quotas, and subsidies are examples of
A
free trade.
B
trade barriers.
C
trade incentives.
D
restrictive licenses.
18.
All of these restrict international trade EXCEPT
A
quotas.
B
subsidies.
C
embargoes.
D
trade deficits.
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• "Real wages for Mexican industrial workers declined 13.5% since 1994."
• "Over 500,000 U.S. employees have lost their jobs after their companies moved to Mexico."
• "Mexico has lost over 1 million farming jobs."
19.
• "Illegal immigration to the U.S.. has approximately doubled since 1994."
These are all arguments used by someone who would be OPPOSED to
A
the North Atlantic Treaty Organization.
B
the North American Free Trade Agreement.
C
the creation of tariff on imported goods.
D
the construction of a wall along the US-Mexico border.
· Value of $1 U.S. in pesos is 10.34
· Value of 1 Peso in U.S. Dollars is $0.09
Shelby traveled to Mexico to a resort and took $100 in U.S. currency. When she exchanged it for
pesos, she received
20.
A
10.3 pesos.
B
103 pesos.
C
900 pesos.
D
1034 pesos.
Over the course of a year, the Mexican peso has depreciated relative to the U.S. dollar. Who would
MOST benefit from this occurrence?
21.
A
U.S. consumers of U.S. goods
B
U.S. consumers of Mexican goods
C
Mexican consumers of U.S. goods
D
Mexican consumers of Mexican goods
22.
According to the information, one U.K. pound is worth approximately
A
one U.S. dollar.
B
two U.S. dollars.
C
four U.S. dollars.
D
one-half of one U.S. dollar.
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