Welcome to your Grade 11 Economics chapter 5
After carefully reading the following 30 questions, choose the correct answer.
1.
What is the process of buying, selling, or exchanging goods and services called?
2.
Domestic trade refers to the exchange of goods and services within:
3.
Which type of trade involves selling goods for direct consumption to the final user?
4.
What is a major difference between domestic and international trade regarding factor inputs?
5.
Which group believed that a country's wealth is based on holdings of precious metals like gold?
6.
According to Adam Smith, international trade is possible when a country has:
7.
Who developed the theory of comparative advantage?
8.
What is the systematic record of all economic transactions of a country with the rest of the world?
9.
Which component of the Balance of Payments includes the trade in goods and services?
10.
A "trade quota" is defined as:
11.
What is the price of one currency in terms of another currency called?
12.
In which exchange rate system is the value of a currency fixed to a commodity like gold?
13.
What does "import substitution" strategy advocate?
14.
Which trade strategy aims to enhance exporting activity in a country?
15.
Regional integration is a process where two or more countries agree to:
16.
What is the primary goal of globalization regarding world markets?
17.
Which of the following is considered a "downside" of globalization in Ethiopia?
18.
The Capital Account of the Balance of Payments records:
19.
What happens in a "floating" exchange rate system?
20.
A "tariff" is best described as:
21.
Why did Mercantilists recommend restricting imports?
22.
Which theory allows for trade even if one country is more efficient in all products?
23.
Domestic trade involving agents other than standard consumers is called:
24.
The term "foreign trade" is synonymous with:
25.
In the Ethiopian context, which city is the Headquarters of the African Union?
26.
Which of the following is NOT a commercial policy used in international trade?
27.
Real exchange rate differs from nominal exchange rate because it accounts for:
28.
What is one of the main advantages of economic integration?
29.
Mercantilism encourages:
30.
The current account plus the capital account (ignoring errors) should equal:
