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Voluntary Trade in SW Asia

Total questions: 34

Worksheet time: 52mins

Name
Class
Date
1.

Why does specialization make trade between countries easier?

a)

There will always be a steady supply of goods on the market so trade is not needed.

b)

Countries can produce what they make best and trade with others for what they need.

c)

A country’s economy will never go through a difficult time if they specialize in a good.

d)

The competition between countries will not exist.

2.

Which trade barrier sets up a complete ban on trading between countries?

a)

mountains

b)

tariff

c)

quota

d)

embargo

3.

A tax on imports is a/an:

a)

tariff

b)

quota

c)

embargo

4.

A limit to the number of imports that may enter a country is a/an:

a)

tariff

b)

quota

c)

embargo

5.

A government order stopping trade with another country:

a)

tariff

b)

embargo

c)

quota

6.

Which is an example of a quota?

a)

The U.S. stops trade with China.

b)

The U.S. limits the amount of foreign cars brought into our country.

c)

The U.S. pays a high tax on BMW cars brought into the country.

7.

In 1962, the United States prohibited all imports and exports to and from Cuba. This is an example of a/an:

a)

Tariff

b)

Embargo

c)

Quota

8.

An exchange rate is used to:

a)

promote the argument supporting free trade.

b)

promote the use of subsidies on foreign goods.

c)

determine the price of one country's imports in terms of another country's imports.

d)

determine the price of one country's currency in terms of another country's currency

9.

Why is a system of currency exchange necessary for international trade?

a)

Nearly all world currencies are worthless on the world market.

b)

Those buying goods on the world market only accept payment in gold and silver.

c)

Most goods bought on the international market must be bought and paid for using United States dollars only.

d)

There must be a way to pay for goods purchased from countries with different types of currencies.

10.

During a war, which type of trade barrier is often used the most between the warring countries?

a)

embargo

b)

quota

c)

tariff

11.

How does specialization allow for a higher standard of living?

a)

Everyone is better educated.

b)

Those who specialize have more money.

c)

People who specialize are happier than those who don't.

d)

People can trade for those items they don't produce themselves.

12.
Why would a country want to erect trade barriers such as tariffs or quotas?
a)
to make goods cheaper
b)
to expand their markets
c)
to protect domestic jobs
d)
to stimulate the economy
13.

Which of these is a natural result of specialization?

a)

IIsolation is caused by specialization.

b)

When people specialize, they become rich.

c)

Specialization leads to interdependence.

14.

A tariff is a form of taxation on foreign products, while a quota is a/an ______ on imports from foreign countries

a)

Boost

b)

Increase

c)

Limit

d)

Rise

15.

A quota is a limit on an imported good. Which is an example of a quota helping local farmers?

a)

Taxing corn from another country.

b)

Allowing less corn to be bought from other countries' farms.

c)

To stop buying corn from another country.

16.
A tariff....
a)
Encourages people to buy goods made from their country.
b)
Increases trade between other countries.
c)
Stops trade completely.
d)
Only placed to encourage democracy.
17.

An import:

a)

Is producing certain goods very well and for a reduced cost.

b)

Is items sold to other countries.

c)

Is dependence on others to get products you do not produce and needing to purchase items from them.

d)

Is items purchased from other countries. Goods come into the USA.

18.

An export is:

a)

items purchased from other countries.

b)

dependence on others to get products you do not produce and needing to purchase items from them.

c)

items sold to other countries. Goods exit the USA.

d)

producing certain goods very well and for a reduced cost.

19.

A Tariff is an example of ________________.

a)

A trade barrier.

b)

A type of economy.

c)

A government position.

d)

An economic system that allows entrepreneurship.

20.

A country wants to protect their local workers and industries from foreign competition. Which of the following would best achieve their goal?

a)

Impose a tariff.

b)

Lower the GDP.

c)

Raise the GDP.

d)

Engage in specialization

21.

In country A, the mountains are full of diamonds and coal. The country uses these natural resources to create jewelry and power their machines, which they use to trade with other countries. Most citizens work as miners or jewelry-makers. This description best describes

a)

Opportunity Cost

b)

Specialization

c)

Diversification

d)

Differentiation

22.

How could a high tariff on imported corn help the people in the country charging the tariff?

a)

The corn process would be lower if tariffs were in place

b)

Local corn would always be of higher quality than corn from other countries

c)

Local corn would be more plentiful because it was grown closer to the markets

d)

Local farmers would be able to sell their corn since it would be cheaper than the imported corn.

23.

How does voluntary trade help the countries involved?

a)

It helps them form a partnership so they can barter.

b)

It helps them get items they need while making money off of their own products.

c)

It helps them pay taxes on tariffs.

d)

It helps them place embargoes on other nations.

24.

Country A decided to stop trading altogether with country B because country B was an ally of the country C which was at war with country A. What type of trade barrier is this an example of?

a)

Embargo

b)

Quota

c)

Tariff

d)

Specialization

25.

Mr. Caldwell is a US citizen and he plans to travel to the United Emirate Estates. He wants to shop and stay there for about a month. In order to ensure that he can pay for things, what does he need to do before leaving the USA?

a)

Go to a bank and exchange his US money for UAE's money.

b)

Go to a bank and invest his money in the UAE's stock market.

c)

Go to a doctor and get vaccinations so that he will not get sick.

d)

Go to a religious leader for advice on spiritual matters.

26.

Afghanistan is known for their beautiful hand made rugs. In order to protect their locally made rugs, they only allow India to ship a limited number of their rugs to Afghanistan. What type of trade barrier is this?

a)

embargo

b)

tariff

c)

quota

d)

entrepreneurship

27.

A formal halt to trade with a particular country for economic and political reasons is known as

a)

Tariff

b)

Quota

c)

Embargo

d)

Natural Barrier

28.
The economies of Israel, Saudi Arabia, Turkey, and Iran could be best described as
a)
Traditional
b)
Pure Market
c)
Mixed Command
d)
Mixed Market
29.
Which industry does Saudi Arabia's government specialize in?
a)
Oil
b)
technology
c)
agriculture
d)
textile manufacturing
30.
How has Israel's lack of oil affected that country's economy?
a)
Israeli businesses use little oil to operate.
b)
Israel has little industry dues to their lack of oil.
c)
The Israeli economy is built around commercial farming for economic gains.
d)
The Israelis specialize in technology and trade for what they need. 
31.
Which term is necessary for international trade?
a)
embargo
b)
interdependence
c)
currency exchange
d)
human capital
32.
An economic exchange in which all sides agree to participate because they expect to benefit.
a)
International Trade
b)
Voluntary Trade
c)
Economy
d)
Trade barrier
33.
What is "economic specialization"?
a)
directly swapping goods from one country to another without having to use money
b)
trying to avoid investing in industry and technology because of the expense involved
c)
producing all goods and services needed for a country's growth, so that trade with other countries is not needed
d)
producing those goods a country can make most efficiently so they can trade them for goods made by others that cannot be produced locally
34.
Sarah is from Israel and wants to buy something from her neighboring country of Turkey. In order to buy the food, she must determine what good will cost her in Lira rather than in Israeli shekels. What do we call this?
a)
interest rate
b)
exchange rate
c)
production rate
d)
literacy rate