Voluntary Trade

Which is an example of specialization?

• a business makes many different kinds of goods

• a country buys all the goods it needs from another country and does not produce any goods themselves

• a country makes the Best products with available resources and trades for products the country does not produce.

• a violin maker makes a violin for himself by cutting down a tree for wood

Which is NOT an example of specialization?

• producing the best good possible

• using available resources to make goods

• trading produced goods for other goods or resources

• not producing goods and buying all goods from another country

Tariff, Quota and embargo are all examples of a

• trade barrier

• specialization

• currency exchange

• economic system

Tax on imports

• embargo

• tariff

• quota

• international currency

In order to help U.S. car companies sell more cars, some people want to put a limit on the number of cars imported from other countries. This is an example of (a)

• embargo

• tariff

• quota

• currency exchange

A country is trying to build by a nuclear arms program that might threatened national security. What is the BEST trade barrier option against that country?

• tariff

• quota

• currency exchange

• embargo

How much one currency is worth when compared to another is known as a (n)

• tariff

• exchange rate

• quota

• specialization

What is the currency in Mexico?

• euro

• dollar

• peso

• pound

What is the currency in Great Britain?

• dollar

• euro

• peso

• pound

Why do countries have to set up a system of currency exchange?

• People like to only trade with countries that use the dollar

• Currency has a different value in each country

• Countries only trade with countries with the same currency

• Paper money has the most value