Unit 5 Review

Front

How does specialization help trade?

Back

It helps countries focus on producing goods they are best at, increasing efficiency.

Front

What is a tariff?

Back

A tax on imported goods.

Front

What is a quota?

Back

A limit on the number of goods that can be imported.

Front

Why do we need to exchange currencies in international trade?

Back

Because different countries use different money, it needs to be converted for trade.

Front

Which of the following is not a benefit of voluntary trade? It allows countries to get goods they cannot produce themselves. It increases the variety of products available. It encourages cooperation between countries.

Back

It makes all products free.

Front

What are the three main trade barriers?

Back

Tariffs, quotas, and embargoes.

Front

What is the literacy rate?

Back

The percentage of people who can read and write.

Front

What are "capital goods"?

Back

Buildings, machinery, and equipment used to produce goods.

Front

How does human capital help a country's economy?

Back

By improving the knowledge and skills of workers through education and training.

Front

What is GDP per capita?

Back

The total economic output of a country divided by its population.