Economic Specialization and Trade Quiz

Which barrier to trade sets a limit on the number of certain goods that can be imported?

What were the TWO primary goals of the North American Free Trade Agreement (NAFTA)?

• reducing barriers to immigration between Canada, Mexico, and the United States

• creating a mutual defense pact between Canada, Mexico, and the United States

• eliminating barriers to trade between Canada, Mexico, and the United States

• reducing industrial pollution within Canada, Mexico, and the United States

• encouraging economic growth in Canada, Mexico, and the United States

How did the North American Free Trade Agreement increase economic cooperation between Canada, Mexico, and the United States?

Which statement about trade barriers is correct?

• Quotas and embargoes are imposed to encourage international trade.

• Tariffs are imposed to encourage consumers to purchase domestic goods.

• Quotas are imposed to encourage producers to improve the quality of goods.

• Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

Venezuela controls large deposits of oil. How does economic specialization affect oil production in Venezuela?

• Venezuela produces only enough oil for its own needs in order to conserve it for the future.

• Venezuela produces only enough oil for its own needs because it is difficult to ship internationally.

• Venezuela focuses on importing the oil it uses in order to conserve its own supplies for the future.

• Venezuela focuses on producing oil and selling it to other countries to raise money for the government.

For decades, the United States embargoed trade with Cuba. What was the result of imposing the embargo?

• The United States and Cuba grew closer economically.

• The economies of both the United States and Cuba suffered.

• All trade between Cuba and the United States became illegal.

• Cubans were forced to pay a fee to trade with the United States.

What is the purpose of specialization?

• to increase the efficiency of production

• to increase the volume of production

• to create a negative balance of trade

• to create an economic barrier to trade

Read the text. Then answer the question that follows. Country X, a small country in Latin America, is a major exporter of oil, natural gas, and coal. The country has a modern, industrialized manufacturing sector and a thriving automobile industry. Rapid population growth coupled with a severe drought have led to food shortages and a sharp rise in grain prices. Which country should Country X trade with?

• a country that specializes in energy production

• a country that specializes in car manufacturing

• a country that specializes in textile manufacturing

• a country that specializes in agricultural production

Use the chart to answer the question. Trade Barrier X Y Effect a ban on trade with a particular country a limit placed on imports from a particular country a tax placed on imports from a particular country What do X, Y, and Z represent?

• X is a quota, Y is an embargo, and Z is a tariff.

• X is a quota, Y is a tariff, and Z is an embargo.

• X is an embargo, Y is a quota, and Z is a tariff.

• X is an embargo, Y is a tariff, and Z is a quota.

Why do countries need to have a system for exchanging currency with other nations?

• to have a uniform value of currency so they can identify what the value of goods are

• to know which countries' currency has the greatest value so they can buy goods at the lowest cost

• to know the value of their money compared to the value of other countries' money so they can trade goods

• to have an international bank that converts the money of each country so countries can buy and sell goods