56 (a, b, c) Explain how voluntary trade benefits buyers and

What is a quota?

• A tax on imports
• A limit on imports
• A halt to trade
• A tax on exports

What is a trade surplus?

• When country imports more than it exports
• When a country exports more than it imports
• When a country will export to only one country
• When extra exports are sent to a country

What is GDP?

• the total value of all goods and services produced in a year in one country
• the total value of goods produced by a person in a year.
• the total value of goods consumed by a person in one year.
• the total value of all goods and services consumed in a year in one country

Why do countries need an exchange rate?

• to promote tourism
• to determine GDP
• to see who has the most money
• to trade with each other

What is specialization?

• when a country produces only the goods it can make easily and efficiently
• when a country produces only special goods
• when a country produces only the goods to export
• when a country only imports goods

What is a subsidy?

• A tax on imports

• When the government of a country gives money to certain businesses so that they can continue to compete with imports from other countries

• A halt to trade

• A tax on exports

What are sanctions?

• A tax on imports

• When the government of a country gives money to certain businesses so that they can continue to compete with imports from other countries

• when countries use trade barriers, like quotas or tariffs, to punish another country

• A tax on exports

What is the definition of economic specialization?

• Producing all goods and services needed for a country’s growth, so that trade with other countries is not needed.

• Producing those goods a country can make easily so they can trade them for goods made by others that cannot be produced locally

• Directly swapping goods from one country to another withouthaving to use money

• Trying to avoid investing in industry and technology because ofthe expense involved.

In 2006, the United Nations passed a Resolution that prohibits states from directly or indirectly supplying North Korea with conventional weapons (battle tanks, artillery, aircraft, missiles, etc.)

• Tariff

• Embargo

• Quota

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local

• to raise the price of imported goods to help other countries make more money

• to be mean

• to help the country of the imported goods make a larger profit