FINANCE UNIT

How did trade with Great Britain benefit colonial settlers in North America?

• A. Colonists were able to grow crops that did not grow well in Great Britain and sell them overseas.

• B. Large deposits of coal allowed the colonies to industrialize and sell manufactured goods to Great Britain.

• C. Great Britain wanted the colonies to succeed, so it only traded with the colonies and paid high prices.

• D. Food crops did not grow well in the colonies, but colonists could buy all that they needed from Great Britain.

Which goods complete the blanks on the map?

• A. 1 - Manufactured goods 2 - Gold, silver, and gems

• B. 1 - Manufactured goods 2 - Tobacco, rice, and other raw goods

• C. 1 - Gold, silver, and gems 2 - Manufactured goods

• D. 1 - Gold, silver, and gems 2 - Tobacco, rice, and other raw goods

How did trade help the United States during the American Revolution?

• A. The United States gained warships and troops by trading the Spain.

• B. The United States gained supplies and allies by trading with France.

• C. The United States won its independence by refusing to trade with Spain.

• D. The United States won its independence by refusing to trade with France.

4. How did industrialization in Great Britain help people in the United States?

• A. The population grew and Britain started buying more grain from the United States.

• B. There was a much higher demand for electricity than before, creating demand for coal.

• C. Textile factories started producing fabric much faster than before, creating demand for cotton.

• D. The number of factories grew and Britain started buying machines from the United States.

5. How did industrialization in Great Britain help people in the United States?

• A. The population grew and Britain started buying more grain from the United States.

• B. There was a much higher demand for electricity than before, creating demand for coal.

• C. Textile factories started producing fabric much faster than before, creating demand for cotton.

• D. The number of factories grew and Britain started buying machines from the United States.

Read the passage. Then answer the question that follows.

Walter lives in the Virginia Colony. Paul lives in the Massachusetts Bay Colony. Walter travels to Massachusetts one summer. He wants to trade the corn he grew for furs. These furs will help his family stay warm during the winter. Paul trades for the corn because its his favorite food. It does not grow well in his colony. Walter and Paul meet in the local market and trade fifty ears of corn for five large furs.

Which statement about the trade that took place in this passage is correct?

• A. Because both people benefited and traded for something they wanted, it was a voluntary exchange.

• B. Since one person received a larger amount of goods than the other, it was not a voluntary exchange.

• C. Because both people received a different type of good than they traded, it was a voluntary exchange.

• D. Since one person had to travel in order to trade with the other person, it was not a voluntary exchange.

7. What is always true in a voluntary exchange?

• A. Both sides benefit from the exchange.

• B. Both sides trade the same type of item.

• C. Both sides value the traded items equally.

• D. Both sides receive money in the exchange

8. Which of the following must be true in a voluntary exchange?

• A. Money is exchanged for a good or service.

• B. Each trader benefits equally from the exchange.

• C. All traders are honest about the nature of their goods.

• D. Each trader involved must value all goods being traded.

9. Which of the following is NOT always true in a voluntary exchange?

• A. Traders willingly agree to the exchange.

• B. Each trader benefits from the exchange.

• C. Traders are honest about their goods.

• D. Money is exchanged for a good or service.

10. Phil gives Olivia a basket of corn and Olivia gives Phil two blankets in return. What is this an example of?

• A. personal budgeting

• B. specialization

• C. voluntary exchange

• D. charity