ECONOMICS 6.16.F - Quiz: Business & Trade

If Country A can produce wheat at a lower opportunity cost than Country B, then Country A has a(n) ________ advantage in wheat production.

comparative

In Economics in One Lesson, Hazlitt talks about what would happen if a tariff that had brought an industry into existence was repealed. What does Hazlitt say the results would be? (Choose all that apply.)

,Domestic manufacturers in that industry would go out of business, and many workers would lose their jobs., Products in that industry would become less expensive or of higher quality., Production on net balance would go up.

According to the chart, which statement is true?

Steelville has an absolute advantage in corn production.

Which of the following would be hurt by a strong dollar?

An American farmer who exports corn to the Middle East

Which of the following are advantages of partnerships? (Choose all that apply.)

They are generally easy and inexpensive to start., Their owners can share responsibilities based on their different skills.

Which of the following are true about the impact of entrepreneurship on society? (Choose all that apply.)

Entrepreneurship leads to higher-quality goods., Entrepreneurship increases competition.

​Historically, many countries used to fix their currency to a set amount of ________.

gold

Entrepreneurs develop new products and start new businesses by ________.

bringing natural, human, and capital resources together

Which of the following is a regional political and economic union that promotes trade by removing trade barriers and adopting a common currency?

EU

"If anyone is not willing to work, let him not eat." Which verse says this?

2 Thessalonians 3:10

What group was established in 1995 and oversees international trade agreements, provides a place for its member nations to negotiate, and acts as a mediator when disputes arise?

World Trade Organization

In one sentence, define the term partnership agreement.

It is an agreement between partners that outlines the privileges that the partners get and their responsibilities.

Hazlitt compares economics to both mathematics and ________.

engineering

Which of the following are disadvantages of sole proprietorships? (Choose all that apply.)

Their owners usually have limited financial resources., Their owners have unlimited personal liability.

Which of the following is the most common trade barrier?

Tariff

Hazlitt writes that "a little economics can easily lead to...paradoxical and preposterous conclusions." What does he say about depth in economics?

It brings people back to common sense.

Trade barriers are harmful to which of the following groups? (Choose all that apply.)

Domestic consumers, Foreign producers in the affected industries

When a country determines its areas of comparative advantage and specialization, it puts itself in a position to ________ through trade with other countries.

strengthen its economy

What effect do tariffs have on domestic producers?

Tariffs help producers in the protected industries at the expense of all other domestic producers.