Voluntary Trade Quiz

What is voluntary trade key to?

• A) A healthy market economy

• B) Government regulation

• C) Decreased efficiency in production

• D) Limited trade among nations

What occurs when both parties in a transaction are able to gain something from the exchange?

• A) Involuntary trade

• B) Voluntary trade

• C) Trade deficit

• D) Trade surplus

What does voluntary trade encourage people and industries to do?

• A) Specialize in production that is less efficient

• B) Avoid international trade

• C) Specialize in production that is more efficient and profitable

• D) Focus on domestic trade only

What has developed in Africa to make trade among nations more open and mutually supportive?

• A) Global trade agreements

• B) National trade policies

• C) Regional trade organizations

• D) International embargoes

Why do countries specialize in producing certain goods and services?

• To increase their dependency on other countries.

• To produce goods and services they can produce most efficiently.

• To export less and import more.

• To avoid trading with other countries.

What do countries do with the money gained from exporting products?

• They save it for future investments.

• They use it to buy goods they are unable to produce.

• They distribute it among the citizens.

• They use it to reduce the production of their specialized goods.

Can every country produce all of the goods and services it needs?

• Yes, every country is self-sufficient.

• No, not every country can produce all of the goods and services it needs.

• Yes, but only during economic crises.

• No, countries prefer to import most of their goods and services.

What has South Africa specialized in?

• Oil production

• Mineral wealth and precious metals industry

• Food import

• Textile manufacturing

What percentage of the US oil comes from Nigeria?

• 5%

• 10%

• 15%

• 20%

What negative impact has specialization had on Nigeria?

• It has improved Nigeria's economy significantly.

• It has diversified Nigeria's industries.

• It has left other parts of Nigeria's economy behind.

• It has increased Nigeria's food exports.