30 multiple choice questions  5-1 Quiz: Chapter Eight Question 1 (2 points)Proponents of a positive balance of trade believe it is essential to a state because it is a significantsource of __________.Question 1 options:A) diplomacyB) powerC) democracyD) capitalismQuestion 2 (2 points)Applying quotas on imports is a policy that would be followed by a __________.Question 2 options:A) bureaucracyB) conspiratorC) free-market capitalistD) protectionist stateQuestion 3 (2 points)The balance of trade is the value of a state’s imports relative to its __________.Question 3 options:A) budget balanceB) trade statusC) exchange rateD) exports Question 4 (2 points)A state that avoids trading altogether and instead tries to produce everything it needs by itself is following a strategy of __________.Question 4 options:A) mercantilismB) economic liberalismC) autarkyD) comparative advantageQuestion 5 (2 points)Which policy would be followed by a protectionist state?Question 5 options:A) imposing tariffsB) dumpingC) eliminating export dutiesD) disallowing quotas on importsQuestion 6 (2 points)A tariff is a type of tax imposed on __________ by a state.Question 6 options:A) luxury goodsB) revenuesC) importsD) exportsQuestion 7 (2 points) Tax breaks, loans, and guaranteed high prices are examples of what type of protectionism?Question 7 options:tariffsquotasstandardssubsidiesQuestion 8 (2 points)A state will have a positive balance of trade, or trade surplus, when it __________.Question 8 options:imports a surplus of consumer goodsexports more than it importsimports more than it exportsexports progressively more over a fiscal periodQuestion 9 (2 points)How does economic liberalism compare with mercantilism?Question 9 options:Economic liberalism is not concerned with whether one state gains more or less than another, just whether the state’s wealth is increasing in absolute terms, whereas mercantilism emphasizes that each state must protect its own interests at the expense of others.Economic liberalism emphasizes conflicting interests in economic exchanges, whereas mercantilism emphasizes shared interests.Economic liberalism asserts that the most important goal of economic policy is the creation of the most favorable possible distribution of wealth, whereas mercantilism asserts that the most important goal is the maximum creation of total wealth.Economic liberalism advocates a role for politics in market processes, whereas mercantilism advocates for market processes to be relatively unhindered by political  elements.Question 10 (2 points)A __________ would agree that a government’s most useful role is to interfere in economics only to regulate markets in order to help them function efficiently. That is, politics should serve the interests of economic efficiency.Question 10 options:liberalmercantilistMarxistcommunistQuestion 11 (2 points)The U.S. __________ exceeded $560 billion in 2017, with about a quarter accounted for by .

1. 30 multiple choice questions
5-
positive balance of trade believe it is essential to a state
because it is a significantsource of __________.Question 1
is a policy that would be followed by a __________.Question 2
-market
balance of trade is the value of a state’s imports relative to its
instead tries to produce everything it needs by itself is
would be followed by a protectionist state?Question 5
what type of protectionism?Question 7
state will have a positive balance of trade, or trade surplus,
when it __________.Question 8 options:imports a surplus of
consumer goodsexports more than it importsimports more than
it exportsexports progressively more over a fiscal

2. compare with mercantilism?Question 9 options:Economic
liberalism is not concerned with whether one state gains more
or less than another, just whether the state’s wealth is
increasing in absolute terms, whereas mercantilism emphasizes
that each state must protect its own interests at the expense of
others.Economic liberalism emphasizes conflicting interests in
economic exchanges, whereas mercantilism emphasizes shared
interests.Economic liberalism asserts that the most important
goal of economic policy is the creation of the most favorable
possible distribution of wealth, whereas mercantilism asserts
that the most important goal is the maximum creation of total
wealth.Economic liberalism advocates a role for politics in
market processes, whereas mercantilism advocates for market
processes to be relatively unhindered by political
that a government’s most useful role is to interfere in
economics only to regulate markets in order to help them
function efficiently. That is, politics should serve the interests
of economic efficiency.Question 10
options:liberalmercantilistMarxistcommunistQuestion 11 (2
with about a quarter accounted for by tradewith China and
another quarter by oil imports.Question 11 options:surplus of
consumer goodstrade deficittrade surplusrestricted free
is similar to __________.Question 12 options:economic
liberalismrealismMarxism
t to deficits,
__________.Question 13 options:a state cannot have a budget
deficit and a trade deficit at the same timeif a state has a trade
deficit, it must have a budget deficitthe concepts of budget
deficit and trade deficit are used interchangeablya state can
have a trade deficit without having a budget deficitQuestion 14

3. __________ trade in a worldwide market.Question 14
options:limitedunilateralbilateralmultilateralQuestion 15 (2
ervices includes __________.Question 15
options:banking and insurancetelecommunications and
armstourism and textilesaerospace and computer technology
illicit trade are __________.Question 16 options:gaming
software and sound recordingspharmaceuticals and
weaponsweapons and drugsdrugs and DVD filmsQuestion 17 (2
17 options:takes place under universal agreement on what is fair
tradedepends on reciprocityusually involves the United Nations
Economic and Social Councilis ensured mostly by the United
comprehensive, regional free-trade area is in
__________.Question 18 options:North AmericaSouth
AmericaEuropeAsiaQuestion 19 (2 points)
most often __________ production by each member so as to
lower supply.Question 19 options:manipulate; inflatereduce;
inflatemanipulate; limitinflate; reduceQuestion 20 (2
is the __________.Question 20 options:International Energy
AgencyOrganization of the Petroleum Exporting CountriesNorth
American Free Trade AgreementFree Trade Area of the
world’s most important multilateral agreement on intellectual
property.Question 21 options:United NationsWorld Intellectual
Property OrganizationWorld Trade OrganizationUnited
StatesQuestion 22 (2 points)
__________.Question 22 options:dumping in the offending
state’s marketquotas on the products being dumpedtariffs to

4. raise the price back to market levelssubsidies for those
c
that whenever a WTO member state lowers tariffs on certain
kinds of imports fromone member state, all member states are
entitled to the same treatment with regard to their goods is
known as the __________ concept.Question 23 options:most-
favored nationGeneralized System of Preferenceseconomic
nationalismGeneral Agreement on Tariffs and TradeQuestion 24
members of the group.Question 24 options:decide to reduce
trade barriers and adopt a common tariff toward states that are
notdecide to reduce trade barriers for each other and maintain
individual tariffs toward states that are notachieve the free
movement of goods, services, capital, and labor among theadopt
a common currency to be adopted by allQuestion 25 (2 points)
replaced __________ as the state with the world’s largest and
most advanced economy.Question 25 options:Germany;
FranceJapan; the United Statesthe United States; BritainBritain;
and quotas for production and consumption of commodities,
following communist principles. This approach to economics is
an example of a __________ economy.Question 26
options:centrally plannedlocally
is true about the capitalist world economy immediately after
World War II?Question 27 options:The United States provided
major assistance to rebuild Western Europe and Japan.World
trade declined as countries focused on rebuilding their domestic
economies.The Soviet Union and Eastern Europe began their
transition to capitalism.The capitalist world economy was
restructured under joint U.S.-British-French leadership.Question
28 (2 points)

5. economy?Question 28 options:Government officials set
prices.Religious authorities decide production
quotas.Consumers have a wide range of products from which to
choose.Governments cannot guarantee the basic needs of
industrialization of the United States?Question 29
options:limited natural resources as a result of territorial
expansionconversion from imported oil to domestic coal as a
primary energy sourcenew technical innovations, such as
electricity and airplanessmall numbers of immigrants coming to
economy is __________ integrated on a global scale, generating
wealth at a(n) __________ pace.Question 30
options:decreasingly; deceleratingincreasingly;
acceleratingdecreasingly; acceleratingincreasingly;
decelerating0