WorksheetsTrade: Chapter 4 Review
Total questions: 15
Worksheet time: 14mins
Name
Class
Date
1.
The U.S. can produce 50 cars and 25 tools. Peru can produce 20 cars and 15 tools. What is the opportunity cost of producing a car in the U.S.?
a)
.5 tools
b)
.5 cars
c)
.75 cars
d)
1.3 tools
2.
What does Specialization mean?
a)
Something a person does for someone else.
b)
Not being able to have everything that you want because of limited resources.
c)
Having more than you want, or need.
d)
When people work in jobs where they produce a few special goods, or services.
3.
All of the following are advantages of trade EXCEPT
a)
Trade increases competition and lowers world prices.
b)
Trade breaks down local monopolies.
c)
Trade increases the amount of jobs available.
d)
The quality of goods and services is likely to decrease.
4.
A disadvantage of international trade might be....
a)
Local producers might suffer because a foreign product will be cheaper than theirs.
b)
You can purchase rare items from other countries.
c)
If demand falls, more specialized jobs will be created.
d)
New industries can grow because of competition from foreign producers.
5.
How does division of labor increase productivity?
a)
Less training is needed for workers
b)
Less pay for workers
c)
Workers become experts at one task
d)
Workers change jobs more often
6.
In a voluntary exchange (trade), why do people give something up?
a)
To be more independent
b)
To get what they really want
c)
To leave more for others
d)
The government says so
7.
Why is there more specialization now than 400 years ago?
a)
We have more diverse markets
b)
We have more training
c)
We depend less on transportation
d)
There are less people
8.
Why is the commerce clause included in The U.S. Constitution?
a)
To prevent states from creating trade barriers
b)
To pressure states to produce more
c)
To discourage local markets
d)
To reduce supply and demand
9.
Which of these is the MAIN reason one nation has the comparative advantage over another nation in producing raw materials?
a)
Differences in the amount of natural resources
b)
Differences in monetary systems
c)
Differences in culture
d)
Differences in local business practices
10.
How does trade increase the value of an item?
a)
It makes the item more expensive
b)
It puts additional goods into the system which causes competition
c)
It provides more work for storekeepers
d)
It transfers the item to someone who values it more
11.
When people specialize, they no longer produce everything for themselves.
a)
True
b)
False
c)
I don't know
d)
Probably true but more than likely false
12.
Why has the US moved some of its clothing manufacturing to foreign countries?
a)
The market demand has shifted to overseas
b)
American workers have a weak work ethic
c)
Education in the US has fallen behind
d)
Nations with large low skilled workforces have a comparative advantage for assembly line production
13.
If you can perform a task at a lower opportunity cost than someone else, you have a ________.
a)
Comparative advantage
b)
Comparative disadvantage
c)
no advantage
d)
higher intelligence
14.
Some economists believe that poverty is the result of people doing many things for themselves instead of specializing in one thin and getting paid for that service.
a)
False
b)
True
c)
I don't know
d)
Could be false but more than likely true.
15.
What country is the worlds largest importer of foreign made goods and resources?
a)
The United States
b)
China
c)
Brazil
d)
Italy
100 %
