Voluntary Trade Review

factory builds seats that will be sold to different car manufacturers is an example of

• currency

• opportunity cost

• scarcity

• specialization

really good at making one or more things

• talented

• specialization

• scarcity

• opportunity cost

A factory that builds only trucks is an example of ________.

• interdependence

• scarcity

• specialization

• opportunity cost

tax on imported goods

• tariff

• quota

• embargo

• opportunity cost

ways of limiting trade

• trade barriers

• NAFTA

• EU

• command economy

3 types of trade barriers

• traditional, command, market

• tariff, quota, embargo

• specialization, opportunity cost, currency

• natural , traditional, man made

Limit placed on the number of imports that may enter a country

• tariff

• quota

• embargo

• natural barriers

Government order to stop trade with another country to put pressure on another country

• tariff

• quota

• embargo

• natural barriers

What is the purpose of a tariff, such as a protective tariff?

• to decrease the prices of imported goods so a country's people can buy what they need for the lowest cost

• to increase the prices of exported goods so a country's own businesses are less likely to send their products to other nations

• to decrease the prices of exported goods so people in other countries will buy the foreign nation's product over one from home

• to increase the prices of imported goods and protect a country's own industries from foreign competition

Australia is only allowing 50 computers from Japan into the Australia. This would be referred to as a

• tariff

• quota

• embargo

• natural barrier