7th Grade-SW Asia-Voluntary Trade Review / Quiz

Why does specialization make trade between countries easier?

• There will always be a steady supply of goods on the market so trade is not needed.

• Countries can produce what they make best and trade with others for what they need.

• A country’s economy will never go through a difficult time if they specialize in a good.

• The competition between countries will not exist.

Which trade barrier sets up a complete ban on trading between countries?

• mountains

• tariff

• quota

• embargo

A tax on imports is a/an:

• tariff

• quota

• embargo

A limit to the number of imports that may enter a country is a/an:

• tariff

• quota

• embargo

A government order stopping trade with another country:

• tariff

• embargo

• quota

Which is an example of a quota?

• The U.S. stops trade with China.

• The U.S. limits the amount of foreign cars brought into our country.

• The U.S. pays a high tax on BMW cars brought into the country.

In 1962, the United States prohibited all imports and exports to and from Cuba. This is an example of a/an:

• Tariff

• Embargo

• Quota

An exchange rate is used to:

• promote the argument supporting free trade.

• promote the use of subsidies on foreign goods.

• determine the price of one country's imports in terms of another country's imports.

• determine the price of one country's currency in terms of another country's currency

During a war, which type of trade barrier is often used the most between the warring countries?

• embargo

• quota

• tariff

How does specialization allow for a higher standard of living?

• Everyone is better educated.

• Those who specialize have more money.

• People who specialize are happier than those who don't.

• People can trade for those items they don't produce themselves.