AnswersTX-Economics CRUnit Test

Currencies and Exchange Rates Answers

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1
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What is the benefit in reaching the absolute advantage in the production of one good?

A
to produce more units of a good than other countries
B
to produce fewer units of a good than other countries
C
to produce more units of a good while using fewer resources
D
to produce fewer units of a good while using fewer resources
2
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Why do most countries both export and import goods?

A
to eliminate competition from other economies
B
to decrease the production of goods domestically
C
to rely entirely on foreign economies
D
to get a good mix of goods and services
3

The table compares two countries and two products.

Question illustration
A
focus both on its petroleum and seafood industries
B
focus on the seafood industry only
C
focus on the petroleum industry only
D
decide to find another industry to focus on
4

The Middle East is best associated with which internationally traded product?

A
electronics
B
bananas
C
manufactured goods
D
oil
5

What kind of advantage does a country have if it can make a product more efficiently?

A
an import advantage.
B
an export advantage.
C
a comparative advantage.
D
an absolute advantage.
6

Which situation is the best example of opportunity cost?

A
A country chooses to produce bananas instead of wheat.
B
A country chooses to invest in manufacturing and agriculture.
C
A country chooses to specialize in producing paper products.
D
A country chooses to export all of its products.
7

Which is the best example of a country that is dependent on other countries?

A
a country that has little fertile soil
B
a country that has no imports
C
a country with grain surpluses
D
a country with a diverse economy
8

What role does competition play in international trade?

A
It results in higher prices.
B
It discourages imports.
C
It drives down prices for consumers.
D
It does away with the need for investment.
9

A country with an absolute advantage can produce a good or service

A
more slowly than another country.
B
more efficiently than another country.
C
less efficiently than another country.
D
in twice the time as another country.
10

In regard to trade, the United States

A
imports goods and services only.
B
exports goods and services only.
C
does not import or export goods and services.
D
imports and exports goods and services.
11

Which statement best describes how globalization is affecting the world?

A
Globalization is growing less important as time passes.
B
The world is becoming more globalized and connected.
C
Globalization has resulted in fewer connections among countries.
D
Countries are growing less likely to trade with one another.
12

It takes brothers John and Dan the same amount of time to clean the room they share, but John can mow the lawn faster than Dan. Which action would allow them to take advantage of their respective comparative advantages?

A
them both sharing each task equally
B
John mowing the lawn and Dan cleaning their room
C
Dan mowing the lawn and John cleaning their room
D
Dan doing both tasks
13

Which region is most likely to export bananas to the United States?

A
Europe
B
Central America
C
Middle East
D
Asia
14

How does specialization enable countries to trade with one another?

A
A country can make and sell goods affordably and buy goods that it is inefficient at making.
B
A country can make what it chooses and sell its goods to other countries.
C
A country can decide to buy everything it needs from other countries.
D
A country can efficiently make goods that were once difficult to make.
15

When a country chooses to limit the kinds of goods or services it produces, it is practicing

A
absolute advantage.
B
globalization.
C
dependency.
D
specialization.
16

Which region specializes in diamonds?

A
Central America
B
Middle East
C
Europe
D
Sub-Saharan Africa
17

A company in Maine sends lobsters to France. What is Maine doing? Select three options. importing productspracticing international tradeexporting productsparticipating in globalizationending their specialization

A
importing products
B
practicing international trade
C
exporting products
D
participating in globalization
E
ending their specialization

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