Unit 5 - Woods

The World Trade Organization encourages

• trade among member countries
• governments to use a single currency
• countries to protect the rights of workers
• least efficient countries to build trade barriers

If a country wants to specialize in the export of certain goods, it should have:

• access to necessary resources for production
• a comparative advantage in production
• both answers
• none of these

Protectionism:

• protects some domestic jobs
• includes quotas and tariffs
• restricts imports into a country
• all of the above

When a country uses its resources to produce only a few goods; this is called:

• quota
• tariff
• specialization
• protectionism

The world can't produce unlimited amounts of oil. This illustrates the principle of:

• scarcity
• absolute advantage
• inadequate substitute products
• comparative advantage

It takes the Island of Hatfield 19 hours to process coconuts and the Island of McCoy 3 hours to process coconuts. Who has the absolute advantage? 

• Hatfield
• McCoy
• neither
• not enough information provided

When considering free trade, what contributes to a country’s comparative advantage? 

• production costs
• other country's production costs
• both of these
• none of these

In free trade: 

• tariffs are allowed
• quotas are allowed
• protectionism is allowed
• no tariffs or quotas are allowed

The U.S. produces more technical goods for export than other countries because: 

• it has resources better used for technical goods
• knows how to set quotas
• of national security concerns
• of trade barriers

A store can sell either cookies for $2 apiece or cakes for $10 apiece. If it chooses to sell cookies, what are the cakes? 

• less profitable
• trade off
• opportunity cost
• more profitable