1. In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the

A. trade deficit.

B. trade offset.

C. balance of trade.

D. balance of payments.

2. Consider two used-car dealers: Bob's Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?

A. Perfect competition

B. Oligopoly

C. Monopolistic competition

D. Monopoly

3. To help employees become more effectively productive, companies may form cross-_______ teams that draw on people from different departments to work on a special project.

A. functional

B. managerial

C. trained

D. gender

4. Which of the following about a capitalist system is correct?

A. It relies on honesty, integrity, and high ethical standards.

B. It isn't substantially damaged by unethical business behavior.

C. It's one in which the factors of production are owned by the government.

D. It guarantees the success of almost any business.

5. Typically, the quantity of products people are willing to buy will _______ when prices _______.

A. increase; increase

B. increase; stay the same

C. stay the same; increase

D. decrease; increase

6. Uniform product codes are also known as

A. product numbers.

B. customer service standards.

C. basic product quality standards.

D. bar codes.

7. When the value of exports from a country exceeds the value of imports into that country, there's

A. an imbalance of trade.

B. a trade surplus.

C. no balance of payments.

D. a trade deficit.

8. When the government of Indonesia imposes a tax on imported electronics products to help its young electronics industry compete in the global marketplace, it's imposing a/an _______ on foreign electronics products.

A. revenue tariff

B. protective tariff

C. import quota

D. embargo

9. The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.

A. stabilized

B. declined

C. increased

D. been dramatically reduced

10. Often, the _______ the risk, the _______ the rewards.

A. lower; higher

B. faster; quicker

C. higher; higher

D. higher; lower

11. The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.

A. strategic alliance

B. common market

C. joint venture

D. multinational export assistance center

12. Among developed nations, the United States is typical in that it has a _______ economy.

A. mixed

B. socialist

C. free market

D. command

13. In general, a person who owns and operates his or her own business can be thought of as a/an

A. gambler.

B. pioneer.

C. entrepreneur.

D. manager.

14. Efficiency can best be defined as

A. the amount of output generated in a given amount of time.

B. producing items using the least amount of resources.

C. producing as much as you can as fast as you can, regardless of cost.

D. using high-tech equipment on a job.

15. The trend toward two-family income has led to

A. policies allowing only one family member to work for a company.

B. flexible work schedules, pregnancy benefits, and elder-care programs.

C. fewer opportunities in the field of human resource management.

D. businesses paying lower wages and hiring fewer workers.

16. _______ is the study of how to increase resources and create conditions that will make better use of resources.

A. Economics

B. Microeconomics

C. Resource development

D. Macroeconomics

17. In a _______, consumers ultimately decide what should be produced.

A. command economy

B. macroeconomic system

C. free market system

D. socialist economy

18. Which statement best characterizes Adam Smith's concept of the "invisible hand"?

A. Markets create money, and money creates demand.

B. When governments fail to regulate, greed conquers all.

C. Those who don't work shouldn't eat.

D. The quest for personal gain works for the common good.

19. The _______, created in 1995, is assigned the task of mediating international trade disputes.

A. EUB. WTO

C. NAFTA

D. GATT

20. Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula's home nation. In global trade, this is known as

A. dumping.

B. brand infringement.

C. depreciation.

D. freeloading.