Economics Test

What action would a country take that specializes in coal but lacks iron ore?

• They would specialize in iron ore

• They would decrease trading coal to other countries.

• They would specialize in coal and trade this for iron ore.

• They would bargain with other countries for coal.

Countries only specialize in a limited amount of goods because....

• They don't need to trade with other countries.

• They only have a limited amount of goods and can not spare them.

• No country wants to trade their unlimited goods so they specialize in producing their own.

• No country has all the goods and resources it needs, so it specializes in what it has to get the resources they need.

When countries decide to specialize in they.....

• Use non-renewable resources that are scarce.

• Choose resources that are plentiful and look at what other countries need.

• They trade state to state to get what they need to manufacture goods.

• They ask all the other countries what they like best and make that.

Global trade is when countries import and export goods with other nations around the ______________________.

Countries decide who to become trading partners by...

• Becoming best friends with each other.

• Having the same type of governments as each other.

• Looking at what resources they need and want but don't have.

• Competing with each rival country to ruin their economies

What does it mean to export goods and services?

• to ship goods out of your country

• to bring goods into your country

• when countries rely on each other

• to produce limited goods only

To import goods means...

• to have goods bought/brought into your country.

• to rely on other countries to survive

• to make economic choices

• to have future consequences

Interdependent means...

• to not rely on anyone but yourself

• when a country will only trade with countries near them

• use of productive resources

• when countries rely on one another for trade & survival

To specialize means...

• to rely on others to make your goods

• to use your productive resources to create a limited variety of goods

• the trade of goods worldwide

• a present day consequence

Decide if this is an individual or collective economic choice.

Saudi Arabia decides to specialize in producing petroleum products.

• individual economic choice

• collective economic choice