Trade and Development

Which term refers to the type of buying and selling that takes place within a country?

• free trade

• international trade

• productivity

• domestic trade

Which of the following is a likely result of trade barriers?

• reduced competition

• lower prices

• more choices

• increase in imports

Which of the following is a feature of a developed country?

• high tariffs

• lower standards of living

• a strong economy

• lower productivity

Why do countries trade goods and services?

• because they want to reduce interdependence

• because they do not have all the goods and resources they need

• because they want to help other countries grow

• because they want to protect domestic industries from competition

Which of the following is a way to increase economic development?

• raising taxes

• investing in education

• limiting trade

• lowering wages

The exchange of goods and services.

• productivity

• tariff

• profit

• trade

What a country is good at producing, or its ability to produce a product more efficiently than other products.

• tariff

• trade

• comparative advantage

• gross domestic product

International trade is trade with ________ producers and consumers.

• foreign

• domestic

• allied

• friendly

Goods and services that are produced in one country and sold to buyers in another.

• tariffs

• markets

• imports

• exports

Goods or services sold in one country but produced in another.

• tariffs

• markets

• imports

• exports