FAC #5: Test Review | Unit 3

Which statement best explains the importance of voluntary trade?

• helps people get access to resources, technology, and products
• helps countries control the people and economy
• hinders countries imposing tariffs
• promotes world peace

Which of the following is an example of voluntary trade?

• Japan exports electronics in exchange for South Korean cars.
• North Korea charges a tariff on exports to South Korea
• Egypt banning the import of livestock from Sudan.
• Venezuela's embargo on Colombian goods.

If a country's currency weakens then...

• it has no impact on demand for exports
• it causes a trade barrrier
• increases demand for exports and goods become cheaper for foregin countries
• decreases demand for exports, as goods become more expensive

If a country's currency is strong then...

• it has no impact on demand for exports
• it causes a trade barrrier
• increases demand for exports and goods become cheaper for foregin countries
• demand for exports decreases, as the goods become more expensive for foregin countries

Which of the following is way countires would handle air pollution?

• start strict air quality rules and promote cleaner alternatives
• let it go and allow consumers to boycott
• reducing government spending in the industy
• encouraging the factory to continue to pollute the air

Which statement best classifies the following externalities: air pollution and public park

• air pollution and public park are both positive externalities
• air pollution = harmful and public park = helpful
• air pollution = helpful and public park = harmful
• both are not externalities

Which statement explains how supply and demand affect trade for a country?

• if demand is low and supply is high then no trading happens
• they have no effect on trade
• high demand and low supply increase trade opportunties
• supply and demand have to be equal for trade to occur

Phone repair is an example of?

• a scarcity
• a surplus
• a good
• a service

A box of donuts is an example of?

• a scarcity
• a surplus
• a good
• a service

Freedom of speech is protected in a country.

• violating
• protecting