Specialization & Trade Comprehension Check - Element A.

The focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively.....

• Voluntary Trade

• Specialization

• Trade Barriers

• Quotas

TRUE OR FALSE: Voluntary trade is when only one partner freely agrees to and benefits from the exchange of goods/services.

• True

• False

Because countries cannot produce all of the goods/services that they need....

• they will have to get their goods/services from elsewhere.

• they must specialize in what they do best.

• they will have to do without having those goods/services.

TRUE OR FALSE: Trade barriers are natural or man-made obstacles to voluntary trade.

• True

• False

Specialization is an _______ way to work, and the cost of items produced is _______.

• easy ; doubled

• efficient ; lower

• important ; cut in half

• effective ; higher

Specialization _______ trade because a country can get what it needs at the lowest cost.

• Decreases

• Increases

• Slows Down

• Speeds Up

Countries trade goods because.....

• it'll make less labor for the country.

• it helps save money.

• no country has all the resources necessary for production.

Any activity which slows or outright blocks the free exchange of goods and services between nations....

• Sanctions

• Trade Barriers

• Capital Goods

• Embargoes