Canada Economic Systems and Trade Quiz

How does specialization impact trade?

• Country's do not specialize because they want to save their natural resources

• Country can get what it needs at the lowest cost when produced by another country that specializes in that item

• Specialization occurs when a country can produce all their goods themselves

• Country can get what it needs at the highest cost when produced by another country that specializes in that item

Protect domestic producers from outside competition.

• Specialization

• Human Capital

• Gross Domestic Product

• Trade Barrier

Tax on imports

• Tariff

• Quota

• Embargo

• Gross Domestic Product

Canada decides to limit the amount of wheat imported from the United States. This is an example of a

• Tariff

• Embargo

• Quota

• Specialization

Canada is afraid North Korea is building a nuclear arsenal so they decide to forbid all trade to North Korea. This is an example of a (n)

• Gross Domestic Product

• Embargo

• Tariff

• Quota

Why does Canada have a system of currency exchange?

• The world uses American dollars only and Canada has Canadian dollars

• Canada's currency is worth more than United States currency

• They have different currency than other countries

• They only trade with countries that use the dollar

Which country is NOT part of the North American Free Trade Agreement?

• Mexico

• Brazil

• United States

• Canada

The BEST way to describe NAFTA is

• Climate agreement between the United States and Mexico only

• Military alliance between Canada and Mexico

• Climate agreement between the United States and Canada only

• a free trade zone between the United States, Canada and Mexico

What type of economic system BEST describes Canada.

• Traditional

• Market

• Mixed

• Command

What industry does the government make all economic decisions.

• Healthcare

• Computer software

• Car manufacturing

• Sports Management