Review Unit 4 Econ

There are many benefits or advantages to trading with other countries. Select the answer that does NOT describe one of these advantages.

• It creates increased consumption and a higher standard of living.

• It creates more choice and higher quality of goods.

• it creates a need to interact with countries that have very different values.

• It allows for the more efficient use of resources.

Which of the following BEST describes a country having a comparative advantage at producing a good or service?

• Hawaii can sell pineapples at a lower price than any other countries.

• Costa Rica sells goods a lower opportunity cost than its competitors.

• Germany produces cars at a higher opportunity cost than its competitors.

• The United States can produce more movies than any other country while using fewer resources.

Which of the following headlines highlight a trade barrier?

• America reaches trade alliance with Cuba.

• Voluntary trade is now encouraged with Russia.

• Protective tariffs established for China’s businesses

• Quotas are lifted to enable Australia’s free trade.

If the United States decides to lower tariffs on soap products, which of the following effects would occur?

• American soap producers would be exited because they would have less competition.

• Foreign soap producers would be upset because they would have more competition.

• Soap products would become more expensive for American consumers

• Soap products would become cheaper for American consumers.

Unequal distribution of household or individual income across the various participants in an economy

• Economic Inequality

• Absolute Advantage

• Economic Opportunity

• Comparative Advantage

A chance to improved financial conditions (personal, household, or domestic)

• Economic Inequality

• Absolute Advantage

• Economic Opportunity

• Comparative Advantage

County's ability to produce a given product relatively more efficiently than another country; production at a lower opportunity cost

• Economic Inequality

• Absolute Advantage

• Economic Opportunity

• Comparative Advantage

A business approach that places emphasis on resource and product quality in targeting multiple customer types

• Resource and Product Specialization

• Absolute Advantage

• Economic Opportunity

• Comparative Advantage

Raw materials or products that can be bought and sold

• Commodities

• Non-Tariff Barriers

• Free Trade

• Quotas

A form of restrictive trade where obstacles to trade are set up; i. e. quotas

• Commodities

• Non-Tariff Barriers

• Free Trade

• Quotas