Unit 10.3.5 - Global Trade & Trade Policy

Which is central to the operations of a market-based economy?

• the basic laws of supply and demand

• the productivity of subsistence farmers

• the labor force and natural resources of the country

• the allocation decisions of the government

What type of organization is the North Atlantic Treaty Organization (NATO)?

• a global bank

• a military alliance

• a humanitarian agency

• a trading partnership

Which is NOT a benefit of trade?

• job growth

• larger markets

• natural resource conservation

• increased production efficiency

Which is the BEST example of specialization?

• general assistant

• handyman who fixes various house problems

• Walmart employee

• brain surgeon

Which is central to the operations of a command economy? Think North Korea.

• the allocation decisions of the government

• the productivity of subsistence farmers

• the labor force and natural resources of the country

• the basic laws of supply and demand

Which form of competition drives production decisions in a market-based economy?

• competition among consumers to buy goods

• competition between businesses to make money

• competition between governments for territory

• competition among producers for natural resources

Which is NOT a type of economic barrier?

• quota

• embargo

• common currency

• tariff

Which outcome is a drawback of treaties such as the North American Free Trade Agreement (NAFTA)?

• reduced innovation among entrepreneurs

• increased safety regulations

• higher wages for low-skilled workers

• job loss in domestic industries

Which question replaces the question mark in the list below?

• For whom to produce?

• Where to produce?

• When to produce?

• How much to produce?

What does "specialization" mean?

• not being able to have everything that you want because of limited resources

• when people work in jobs where they produce a few special goods, or services

• something one person does for someone else

• having more than you want or need