Trade and Specialization Quiz

What is specialization in trade?

• A country focuses on making all types of products.

• A country focuses on making certain products or services it can make well.

• A country avoids making any products.

• A country makes products only for itself.

What is a tariff?

• A limit on the amount of a product.

• A tax added to products from other countries.

• A complete stop to trade.

• A free trade agreement.

Why do countries need to exchange money?

• To avoid using their own currency.

• To buy products from other countries.

• To increase the value of their currency.

• To stop trade with other countries.

What is one benefit of the USMCA?

• It increases the cost of trading.

• It removes extra costs by lowering taxes.

• It stops trade between the three countries.

• It limits the exchange of ideas and technology.

What is specialization in trade?

• Focusing on making a variety of products

• Focusing on making certain products or services well

• Trading only with neighboring countries

• Avoiding trade with other countries

How does specialization help trade?

• By making products more expensive

• By reducing the need for imports

• By allowing countries to trade for things they can't make easily

• By increasing tariffs on foreign goods

What is the USMCA?

• A trade barrier between the U.S., Mexico, and Canada

• A trade deal between the U.S., Mexico, and Canada

• A currency exchange agreement

• A tax agreement between North American countries

How does the USMCA help workers?

• By increasing taxes

• By protecting workers and ensuring fair treatment

• By limiting trade

• By reducing wages

What is an embargo?

• A tax on imported goods

• A rule that stops all trade with a certain country

• A limit on the amount of goods imported

• A discount on exported goods

Why is exchanging money important for trade?

• It allows countries to avoid using their own currency

• It helps countries buy products from each other

• It increases the value of foreign goods

• It makes trade more expensive