Title: QUIZ: Does International Trade Create Winners and Losers? -- Page One Economics®
Course: Kelly's Copying and Exporting Course > Section: Does International Trade Create Winners and Losers? -- Page One Economics®

Q: International trade is not a zero-sum game because both parties are better off.
- True
- False
A: True

Q: International trade can raise a country’s standard of living by decreasing access to physical capital.
- True
- False
A: False

Q: Which of the following would be “winners” from international trade?
- Consumers who pay higher prices
- Consumers who enjoy a greater variety of products
- Domestic companies without access to larger markets to sell their products
- Foreign companies without access to larger markets to sell their products
A: Consumers who enjoy a greater variety of products

Q: Which of the following would be “losers” from international trade?
- Domestic companies who cannot compete in the global marketplace
- Foreign companies with access to larger markets to sell their products
- Consumers who pay higher prices
- Consumers who enjoy a greater variety of products
A: Domestic companies who cannot compete in the global marketplace

Q: What benefit can a country receive from participating in international trade?
- Decreased standard of living
- Decreased competition for domestic producers
- Access to domestic markets
- Economic growth
A: Economic growth

Q: Which of the following is an example of a trade barrier?
- A domestic sales tax on soda
- A tax rebate for installing solar panels
- A tariff on commercial vehicles
- A patent on a new engine design
A: A tariff on commercial vehicles

Q: Mercantilism encouraged ______ and discouraged ________.
- autarky; trade
- exports; imports
- imports; exports
- trade; autarky
A: exports; imports

Q: Domestic companies that are able to sell on the world marketplace can grow and produce on a larger scale. This, in turn,
- increases the average cost for firms' production.
- creates a more volatile market where prices fluctuate regularly.
- enables firms to produce at a lower average cost.
- decreases the profit margin the company makes off its product(s).
A: enables firms to produce at a lower average cost.

Q: How can international trade help raise a country’s standard of living?
- By increasing competition in domestic markets
- By increasing productivity
- By decreasing access to physical capital
- By increasing population due to immigration
A: By increasing productivity

Q: Government payment to a domestic producer to help reduce production costs is an example of a(n)
- import quota.
- voluntary export restriction.
- tariff.
- export subsidy.
A: export subsidy.