Economics

Chapter 17 – Review Game

1. What are coins and paper bills used as money? currency

2. What is using resources in such a way as to maximize the production of goods and
services? efficiency
3. What is the purpose of import quotas?
A. to create a self-imposed limitation on imports
B. to lower trade barriers
C. to increase the amount of certain imported goods
D. to decrease the amount of certain imported goods (ANS)
4. What is a means of preventing a foreign product or service from freely entering
a nation’s economy? Trade barrier
5. What is a good that is sent to another country for sale? export
6. What is a country’s ability to produce a product most efficiently given all the
other products that could be produced?comparative advantage
7. What is the knowledge and skill gained by a worker through education and
experience?human capital
8. What is the result of a nation importing more than it exports?
trade deficit
9. What is an increase in the value of currency?appreciation
10. What is a good that is brought in from another country for sale?import
11. The most basic argument in favor of protectionism is that it
A. helps a country’s currency appreciate.
B. defends nations against trade wars.
C. protects workers. (ANS)
D. protects consumers.
12. What is the relationship between a nation’s imports and its exports? balance of
trade
13. Which of the following is an example of a trade war?
A. Two countries reduce all trade restrictions on each other.
B. Two countries compete to see which can produce the most of a certain good.
C. Two countries impose tariffs on each other’s products. (ANS)
D. Consumers in two countries refuse to buy the goods of the other country.
14. What is the result of a nation exporting more than it imports?
trade surplus
15. What is a country’s ability to produce more of a given product using a given
amount of resources?absolute advantage
16. What are agreements between countries to cooperate, reduce trade barriers,
and trade with one another?free trade
17. Protectionism is used for all of the following reasons except
A. protecting new industries.
B. protecting jobs.
C. keeping out immigrants. (ANS)
D. ensuring self-sufficiency in case of emergency.
18. Which of the following is an example of a trade barrier?
A. absolute advantage
B. comparative advantage
C. exchange rate
D. import quota (ANS)
19. What is a tax on imported goods? tariff
20. What is the value of a foreign nation’s currency in terms of the home nation’s
currency? exchange rate
21. What are human-made objects used to create other goods and services?
physical capital
22. What causes a country to specialize in certain products?
A. the resources of the nation (ANS)
B. the interests of the citizens
C. the ability to trade with other nations
D. the money it can earn from producing particular products
23. Nations specialize when they
A. have few natural resources.
B. export more than they import.
C. import more than they export.
D. produce certain goods and services more efficiently than others. (ANS)
24. What is a decrease in the value of currency? depreciation
25. What are the resources used to make goods and services?
factors of production
26. What are the four factors of production?
Land, labor, capital, entrepreneurs
27. This word means that society is getting the most it can from its scarce
resources? Efficiency
28. What leads to too few resources to satisfy society's desires?
29. What are the three key economic questions?
What to produce?
How to produce?
For whom to produce for?
30. What is the study of how society manages its scarce resources? Economics