Check Your Notes

Why do countries trade?

• Because half of the world's countries have the the resources necessary to produce every single need.

• Because no country has all the resources necessary to produce every single need.

• Countries do not need to trade.

Why is specializatin an efficient way to work?

• Because less items can be produced by fewer people.

• Because fewer items can be produced at a lower cost.

• Because more items can be produced at a lower cost.

Specialization increases trade because a country can get what it needs at the ____________cost when produced by someone who specializes in produces that item.

• highest

• lowest

• zero (free or no cost)

Which is NOT true about trade barriers?

• Trade barriers make trade easier.

• Trade barriers hinder trade.

• Trade barriers can stop trade.

• Trade barriers restrict trade.

What are the two types of trade barriers?

• Political and Specialized

• Government and Political

• Man-made and natural

Tariffs are ________ placed on iported goods.

• quotas

• number limits

• taxes

Tariffs are used to protect ________________.

• international businesses

• domestic businesses

• busineeses in other countries

The added tax makes an imported good _______________, thus encouraging the country's consumers to buy produces made in "home" country.

• less expensive

• the same price

• more expensive

Quotas are __________________ on the amount of a good that can be imported from another country.

• restrictions

• not trade barriers

An embargoes are a _________________ to trade.

• political barrier

• way of helping people