Voluntary Trade Comprehension Check

What are two advantages of specialization?

• Lower costs

• more options

• faster production

• reduced taxes

What trade barrier restricts the quantity of an item that is brought into a country?

• tariff

• quota

• embargo

• all of the above

What type of trade barrier involves adding a special tax on imported goods?

• quota

• supply and demand

• embargo

• tariff

Which of the following is an example of specialization in many Middle Eastern countries?

• Religion

• Water

• Oil

• Oranges

What is an embargo?

• a limit on the amount of goods a country can export to another country

• tax on imported goods

• Complete ban on trading between two countries

How did the United Nations punish Iraq when it invaded Kuwait in 1990?

• they stopped donating to poor people in Iraq

• Placed an embargo against Iraq, only allowing enough oil exports to buy food

• they forced Iraq to give their oil to Saudi Arabia

• they raised the tariff on oil from Iraq

Why has the US placed several embargoes against Iran over the past two decades?

• the US wanted to allow domestic companies to compete fairly with foreign companies

• the US does not like Iran

• we do not share the same government system, and cannot trade because of that

• Iran's involvement with Terrorism

What does OPEC stand for?

• Organization of Participating Exploration Countries

• Organization of Petroleum Efficient Countries

• Organization of Petroleum Exporting Countries

• Organization of Public Exporting Countries

Who were the founding members of OPEC?

• Iran

• Iraq

• Saudi Arabia

• Kuwait

• Venezuela

What is OPEC's function?

• to regulate oil production and prices

• to donate oil to countries that need it

• to create new options for the world when we run out of oil