Module 6 Lesson 4

What does comparative advantage help countries to do?

• Focus on products they can make the worst

• Focus on products they can make the best

• Stop trading with other countries

• Increase the cost of their products

What is the benefit of countries trading with each other?

• Customers can purchase items at the most reasonable prices

• Customers have fewer choices

• Prices increase significantly

• Countries become isolated

What is the main focus of comparative advantage?

• Producing goods at a higher cost

• Producing goods at a lower cost

• Stopping all trade

• Increasing tariffs

What is the purpose of international trade?

• To increase isolation

• To share goods and services

• To stop all production

• To increase tariffs

Goods that we buy from other countries are called what?

• Imports

• Exports

• Tariffs

• Quotas

Goods that we sell to other countries are called what?

• Imports

• Exports

• Tariffs

• Quotas

What is one benefit of having a higher number of exported goods than imported goods?

• A trade deficit

• A favorable balance of trade

• Increased tariffs

• Decreased production

What is the purpose of protecting domestic industry with tariffs?

• To increase imports

• To protect jobs

• To reduce exports

• To lower prices

What is the result of focusing on exporting high-value items?

• Increased imports

• More money

• Higher tariffs

• Less production

What is a quota in terms of trade?

• A restriction on the amount of a specific good that is allowed to be imported.

• A tax on imported goods.

• A government subsidy for exports.

• A free trade agreement.