FAC#4 | Unit 3

Which statement best explains the importance of voluntary trade?

• helps people get access to resources, technology, and products
• helps countries control the people and economy
• hinders countries imposing tariffs
• promotes world peace

What makes trade among countries voluntary?

• it is forced
• the countries trade willingly
• the trade threaten
• the trade is demanded

Which of the following encourages international trade?

• trade barriers
• tariiffs
• specialization
• quotas

What is an exchange rate?

• its a percentage owed
• its a loan needed to do trade
• determines length of trade terms
• determines the value of one currency compared to another

Which of the following is an example of voluntary trade?

• Japan exports electronics in exchange for South Korean cars.
• North Korea charges a tariff on exports to South Korea
• Egypt banning the import of livestock from Sudan.
• Venezuela's embargo on Colombian goods.

What is currency?

• debt
• money
• liability
• loans

If a country's currency weakens then...

• demand weakens
• its imports become cheaper
• its exports become cheaper and demand increases
• its exports become expensive and demand goes down

If a country's currency is strong then...

• imports are more expensive
• trade is impossible
• they will export more
• they will export less

Why are currency value and exchange rates are so important?

• determines trade and impact economies worldwide
• determines governments and human rights
• determines conflicts
• determines geographical issues

Which statement best describes externalities

• The harmful results of consumption and production of goods and services.
• Only the bad consequences of economic activity on the people.
• Only the good consequences of economic activity on people
• The good and bad consequences of economics on society.