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Nelson Mejias
Introduction to Business - WI15
Chapter 03: Multiple Choice Quiz
2/19/15 11:29 AM
2/19/15 11:34 AM
Completed
20 out of 20 points
5 minutes

Question 1
1 out of 1 points

By requiring products to be sold for not less than their production cost, the
United States is attempting to prohibit
Selected Answer:

dumping.
Correct Answer:

dumping.

Question 2
1 out of 1 points

Absolute advantages are almost always based on the availability of ___

resources; otherwise they rarely last.
Selected Answer:

natural
Correct Answer:

natural

Question 3
1 out of 1 points

___ advantage occurs when a country specializes in products it can supply

more efficiently or at a lower cost than it can produce other items.
Selected Answer:

Comparative
Correct Answer:

Comparative

Question 4
1 out of 1 points

The purchase of goods and services from foreign sources is called

Selected Answer:

importing.
Correct Answer:

importing.

Question 5
1 out of 1 points

In which of the following do a percentage of members share a common

currency?
Selected Answer:

European Union
Correct Answer:

European Union

Question 6
1 out of 1 points

___ is the difference in value between a nation's imports and exports.

Selected Answer:

Balance of trade
Correct Answer:

Balance of trade

Question 7
1 out of 1 points

Which of the following buys products in one country and sells them to
buyers in another country?
Selected Answer:

Trading company
Correct Answer:

Trading company

Question 8
1 out of 1 points

A country with a trade ___ has a favorable balance of payments.

Selected Answer:

surplus
Correct Answer:

surplus

Question 9
1 out of 1 points

Railroads, hospitals, and highways are examples of ___.

Selected Answer:

infrastructure
Correct Answer:

infrastructure

Question 10
1 out of 1 points

___ refers to the ratio at which one country's currency can be converted
into another country's currency.
Selected Answer:

Exchange rate
Correct Answer:

Exchange rate

Question 11
1 out of 1 points

If the United States wanted to reduce the cost of its goods in foreign
markets, it could
Selected Answer:

devalue its currency.

Correct Answer:

devalue its currency.

Question 12
1 out of 1 points

The United States, Great Britain, and Japan

Selected Answer:

are industrialized nations.

Correct Answer:

are industrialized nations.

Question 13
1 out of 1 points

___ is transferring manufacturing or other tasks to companies in countries

where labor and supplies are less expensive.
Selected Answer:

Outsourcing
Correct Answer:

Outsourcing

Question 14
1 out of 1 points

A(n) ___ is a tax based on the value of the item.

Selected Answer:

ad valorem tariff
Correct Answer:

ad valorem tariff

Question 15
1 out of 1 points

A(n) ___ restricts the number of units of a product that can be imported.
Selected Answer:

quota
Correct Answer:

quota

Question 16
1 out of 1 points

The United States' prohibition of imported Cuban cigars is an example of

Selected Answer:

an embargo.
Correct Answer:

an embargo.

Question 17
1 out of 1 points

The Organization of Petroleum Exporting Countries is an example of a(n)

Selected Answer:

cartel.
Correct Answer:

cartel.

Question 18
1 out of 1 points

___ involves selling a product at prices below the cost of production.

Selected Answer:

Dumping
Correct Answer:

Dumping

Question 19
1 out of 1 points

___ agreements involve bartering products for other products instead of

for currency.
Selected Answer:

Countertrade
Correct Answer:

Countertrade

Question 20
1 out of 1 points

Until recently, the United States could produce oil-drilling equipment more
efficiently than other countries, and, in a sense, monopolized the industry.
In the market for oil-drilling equipment, the United States had a(n)
Selected Answer:

absolute advantage.
Correct Answer:

absolute advantage.