Chose the most suitable answer.
1.
Trade is a modern invention
A.
True
B.
False
2.
When countries produce goods or
services in amounts they are unable to use/consume at home, this is called a…
A. Production overstock.
B. Production excess.
C. Production surplus.
D. Production reserve.
3.
Which of the following is NOT a
reason why nations export?
A. Some nations
produce more goods or services than can be consumed at home.
B. Some nations
are able to sell goods or services to other nations at higher prices than they
can obtain domestically.
C. For some
nations, especially developing countries, export can serve the purpose of
earning foreign currency with which they can buy essential imports.
D. For some
nations, export can halt the fluctuation of the national currency.
4.
The Economist magazine annually
publishes what it calls the _____ Index, which has proven to be a fairly
accurate predictor of exchange rate changes.
A. Whopper
B. Big Mac
C. Fast Food
D. French Fries
5.
When the exchange rate is taken into
consideration, prices do not vary among countries.
A.
True
B.
False
6.
_____ countries tend to export a
much wider range of products than _____ countries.
A. Developing, industrial
B. Industrial, developing
7.
Which of the following is NOT a
reason why countries import goods or services?
A. Essential
goods or services are not naturally available or cannot be produced at home.
B. Essential
goods or services can be produced cheaper or more efficiently in other
countries and thus sold at lower prices.
C. Importing
goods or services prevents the imposition of exchange controls by the importing
country.
D. Some consumers
prefer imported versions of certain goods (e.g. wine, cheese).
8.
What, in essence, does the theory of
competitive advantage state?
A. It states that
all countries gain from trade with each other, regardless of how capacious they
are in labor, capital and land, and regardless of how efficiently they can
produce any particular good.
B. It states that
only countries, which are well-endowed in labor, capital and land can gain from
trade.
C. It states that
only countries, which are lacking in labor, capital and land can gain from
trade.
9.
In economic terms, the amount of
good or service that is sacrificed in order to produce an alternative good or
service is known as…
A. Opening cost
B. Opportunity
cost
C. Occurrence
cost
D. Opportune cost
10.
A country is said to have a
comparative advantage in whichever good has the _____ opportunity cost.)
A. Highest
B. Lowest
11.
Which of the following statements is
UNTRUE?
A. A country’s
trade balance is the difference between the amount of that country’s imports
and exports of goods and services in a given year.
B. When a
country’s total annual exports exceed its total annual imports, it is said to
have trade surplus.
C. When a
country’s total annual imports exceed its total annual exports, it is said to
have trade surplus.
D. When a
country’s total annual imports exceed its total annual exports, it is said to
have trade deficit.
12.
Which of the following is NOT a
reason why trade deficits are often seen as harmful?
A. They represent
an expenditure of future growth, since investment in future growth is being
traded for consumption in the present.
B. They are often
viewed as a sign of a country’s economic weakness, as they are said to reflect
an excessive reliance on products made by others as a result of the home
country’s inefficient economic output.
C. Large trade
deficits create more favorable conditions for a financial crisis.
D. Major trade
deficits lower a country’s living standards considerably.
13.
Governments have traditionally tried
to manage trade flows in two fundamental ways:
A. By encouraging
exports and restricting imports.
B. By restricting
exports and encouraging imports.
14.
Tariffs are taxes that are
traditionally imposed upon…
A.
Exported goods upon their departure out of the country.
B. Imported goods
upon their entry into a country.
15.
Which of the following statements is
UNTRUE?
A. The Uruguay
Round witnessed the creation of two key agreements, which established new
rules, liberalizing trade in services.
B. The Uruguay
Round focused on reducing or eliminating tariffs.
C. The Uruguay
Round created the World Trade Organization (WTO).
D. The Uruguay
Round established new rules on protecting copyrights, trademarks and other
forms of intellectual property.
Choose the correct gerund or
infinitive from the parenthesis at the end of the sentence.
- She likes to get up early in the morning. (likes / dislikes)
- 1. Alan can’t stand _________ on trains. (riding/ to ride)
- Mr. Harris enjoys _________ people out to dinner. (inviting / to invite)
- In the old days, gentlemen challenged their rivals _______. (fighting / to fight)
- As the famous saying goes, there’s no use ______ over spilt milk. (crying / to cry)
- Jim stopped _________ his shoelace. Wait for him. (tying / to tie)
- My wife always volunteers ___________ cakes PTA meetings. (baking / to bake)
- Don’t waste my time ___________ about your salary. (complaining/ to complain)
- Eva is having trouble _________ on the exam. (concentrating / to concentrate)
- Please allow me ____________ your Facebook page. (joining / to join)
- You won’t forget _________milk on your way home, will you? (picking up /to pick up)
Answers:
- riding
- inviting
- to fight
- crying
- to tie
- to bake
- complaining
- concentrating
- to join
- to pick up
Read the following definition:
1.
The processes
and methods
used to transform tangible
inputs (raw
materials, semi-finished
goods, subassemblies)
and intangible
inputs (ideas,
information,
knowledge)
into goods
or services.(production).
2.
The movement of goods
and services from the source
through a distribution
channel, right
up to the final customer,
consumer,
or user,
and the movement of payment in
the opposite direction, right up to the original producer
or supplier(distribution).
3.
Contract involving
transfer
of the possession
and ownership
(title)
of a good or property,
or the entitlement
to a service,
in exchange
for money
or value.(sale)
4.
The surplus
remaining after total costs
are deducted from total
revenue, and the basis on which tax is
computed and dividend
is paid. (profit).
5.
The primary
area or activity
that a company
was founded
on or focuses on in its business
operations.(core business).
6.
The aggregate
economic
activities (buying, selling,
renting, investing)
of an organization
or of the commercial
and manufacturing
sectors of an economy. (business activity).
Rewrite the definitions above based on the title given:
1.
Production:………………………………………………………………..
2.
Sale
:…………………………………………………………………..
3.
Distribution:…………………………………………………………………
4.
Profit
:…………………………………………………………………….
5.
Activity
:………………………………………………………………….
