Economics Unit 7 Test Questions with
Verified Answers, Newest 2024/2025
1. One country's ability to produce a given product relatively more
efficiently than another country - ANS ✔Comparative advantage
2. the difference between money paid to and money received from other
nations when engaged in trade - ANS ✔balance of payments
3. a system under which the values of currencies are fixed in relation to one
another - ANS ✔fixed exchange rates
4. A system that relies on supply and demand to determine the value of one
currency in terms of another - ANS ✔floating exchange rates
5. one country's ability to produce more of a given product than another
country - ANS ✔absolute advantage
6. Diagram representing maximum combinations of goods and/or services
an economy can produce when all productive resources are fully
employed - ANS ✔production possibilities curve
, 7. A tax placed on imported goods to raise revenue - ANS ✔revenue tariff
8. A tax on an imported product designed to protect less efficient domestic
producers - ANS ✔protective tariff
9. The next best alternative use of money, time, or resources when one
choice is made rather than another - ANS ✔opportunity cost
10.foreign currencies used by countries to conduct international trade - ANS
✔foreign exchange
11.splitting work into a number of separate tasks to be performed by
different workers - ANS ✔division of labor
12.Act of not repaying borrowed money - ANS ✔default
13.A group of sellers or producers acting together to raise prices by
restricting availability of a product - ANS ✔cartel
Verified Answers, Newest 2024/2025
1. One country's ability to produce a given product relatively more
efficiently than another country - ANS ✔Comparative advantage
2. the difference between money paid to and money received from other
nations when engaged in trade - ANS ✔balance of payments
3. a system under which the values of currencies are fixed in relation to one
another - ANS ✔fixed exchange rates
4. A system that relies on supply and demand to determine the value of one
currency in terms of another - ANS ✔floating exchange rates
5. one country's ability to produce more of a given product than another
country - ANS ✔absolute advantage
6. Diagram representing maximum combinations of goods and/or services
an economy can produce when all productive resources are fully
employed - ANS ✔production possibilities curve
, 7. A tax placed on imported goods to raise revenue - ANS ✔revenue tariff
8. A tax on an imported product designed to protect less efficient domestic
producers - ANS ✔protective tariff
9. The next best alternative use of money, time, or resources when one
choice is made rather than another - ANS ✔opportunity cost
10.foreign currencies used by countries to conduct international trade - ANS
✔foreign exchange
11.splitting work into a number of separate tasks to be performed by
different workers - ANS ✔division of labor
12.Act of not repaying borrowed money - ANS ✔default
13.A group of sellers or producers acting together to raise prices by
restricting availability of a product - ANS ✔cartel
