11. Often, the _______ the risk, the _______ the rewards.

A. higher; higher C. higher; lower
B. lower; higher D. faster; quicker

12. 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. import quota C. embargo
B. protective tariff D. revenue tariff

13. Typically, the quantity of products people are willing to buy will _______ when prices
_______.
A. increase; increase C. decrease; increase
B. stay the same; increase D. increase; stay the same

14. The _______, created in 1995, is assigned the task of mediating international trade
disputes.
A. EU C. GATT
B. WTO D. NAFTA

15. In general, a person who owns and operates his or her own business can be thought of
as a/an
A. entrepreneur. C. gambler.
B. manager. D. pioneer.

16. 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 C. Monopolist
B. Monopoly D. Oligopoly

11.A
12.D
13.C
14.D
15.A
16.B

To get the answer to question 11, you need to understand the relationship between risk and rewards. Typically, the higher the risk, the higher the potential rewards. So, the correct answer is A. higher; higher.

To get the answer to question 12, you need to know about different trade policies. When a government imposes a tax on imported products to protect its domestic industry, it is called a protective tariff. So, the correct answer is B. protective tariff.

To get the answer to question 13, you need to understand the relationship between quantity demanded and price. Typically, when prices increase, the quantity of products people are willing to buy will decrease. So, the correct answer is C. decrease; increase.

To get the answer to question 14, you need to know about international trade organizations. The organization created in 1995 to mediate international trade disputes is the World Trade Organization (WTO). So, the correct answer is B. WTO.

To get the answer to question 15, you need to understand the definition of an entrepreneur. An entrepreneur is a person who owns and operates their own business. So, the correct answer is A. entrepreneur.

To get the answer to question 16, you need to understand different types of competition. In the scenario described, where two used-car dealers have similar prices and advertising, it implies monopolistic competition, where there are several sellers with differentiated products. So, the correct answer is C. Monopolistic competition.