Trade

What is Trade?

• The import and export of goods only.

• The voluntary exchange of goods and sevices by people.

• The exchange of goods of equal value, without using money.

• A system of money in general use in a particular country.

International (external) trade is...

• the exchange of goods and services between businesses only.

• the exchange of goods and services without the use of money.

• the exchange of goods and services that occur within the borders of a country.

• the exchange of goods and services between countries.

To focus on producing one thing to improve productivity is known as:

• Specialization
• International trade
• Absolute Advantage
• Supply and Demand

When determining comparative advantage one must determine 

• Opportunity cost
• Specialization
• Absolute Advantage
• Embargos 

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

This trade barrier limits the number of products that can be brought into a country.

• Tariff
• Quota
• Embargo
• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• tariff
• quota
• subsidy
• embargo

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

• tariff
• quota
• subsidy
• embargo

Which of the following is not a benefit of trade between nations?

• More stuff
• Better stuff
• cheaper stuff
• similar stuff

Infant industries can be helped in the world market by giving those industries a 

• subsidy
• quota
• embargo
• tariff