Chapter 3 Test

What is one reason for people to exchange currency?

• To buy and sell goods and services with other countries

• Because different countries have different currencies

• Most people want to use American dollars to trade

• To make more money by trading currency

What country did the United States place an embargo on?

• United Kingdom

• Italy

• Cuba

• France

Why do embargoes usually happen?

• For fun

• To cause a country to get rich

• To keep a country from poor

• Political reasons

Which of these evemts had a tariff placed on an item?

• The bombing of Pearl Harbor

• The Civil War

• The Fall of the Berlin Wall

• The American Revolution

Quotas can cause shortages that cause prices to rise.

• True

• False

______ are limits on the amount of a good that can be imported into a country.

• Embargo

• Quota

• Tariff

• Veto

What trade barrier is known as a tax and is placed on imported goods?

• Quota

• Embargo

• Tariff

• Veto

What are the trade barriers that restrict trade between countries?

• Quota, embargo, and blockage

• Quota, tariffs, and votes

• Quota, blockage and tariffs

• Quota, embargo, and tariffs

What is specialization

• When the leader of country holds a special position in office.

• When a country is labeled special because of its location.

• When a person has a special place at home.

• When one country can produce a good or service at a lower opportunity cost than another country.

Which term means "the amount produced in a country during fiscal year"?

• Gross Production Efficiency

• Gross Domestic Product

• Goods

• Capital