Unit 7 LP 3 Review

Based on the table, which conclusion can be drawn?

• Both Canada and Brazil invest heavily in capital goods needed for the agricultural industry.

• Canada and Brazil would make good trading partners because they specialize in different goods.

• Both Canada and Brazil have traditional economies since they do not rely heavily on manufacturing.

• Canada and Brazil are able to meet their populations' demands because they produce many goods.

Based on this information, which statement about the Canadian economy is MOST LIKELY correct?

• A. Canada barters goods with other countries so it does not have to exchange currencies.

• B. Canada is able to produce all of the goods and services that the country's citizens demand.

• C. The Canadian government controls prices and wages and makes all major economic decisions.

• D. Canada focuses on producing the goods it can make efficiently and trades for goods that it cannot.

Which statements about economic specialization are correct? Select all that apply.

• C. Specialization discourages the division of labor.

• E. Specialization leads countries to depend on each other.

• B. Specialization improves economic productivity.

• D. Specialization discourages private property ownership.

• A. Specialization encourages international trade.

How are tariffs, quotas, and embargoes similar?

• All increase levels of export activity.

• All help improve standards of living.

• All limit the free exchange of goods between countries.

• All encourage countries to specialize in particular goods.

What is the BEST way for the Canadian government to protect the interests of Canadian producers and consumers?

• imposing sanctions on Russia

• imposing an embargo on Russia

• placing a tariff on Russian gas imports

• creating a subsidy for Russian gas imports

In which situation would the Canadian government MOST LIKELY impose an embargo on a foreign country?

• if the country posed a threat to the security of Canada

• if the country specialized in the same goods as Canada

• if the country used a different form of currency from Canada

• if the country removed restrictions on immigration from Canada

What is this table designed to illustrate?

• effects of trade barriers

• economic specialization

• gross domestic products

• currency exchange rates

Based on the information in this table, which of the following is true?

• A Mexican peso is more valuable than a US dollar.

• A Canadian dollar is more valuable than a US dollar.

• A Mexican peso is more valuable than a Canadian dollar.

• A Canadian dollar is more valuable than a Mexican peso.

Ava lives in New York state. She and her mother are planning to visit her grandmother, who lives in Montreal, Canada. They are going to drive across the border and meet Ava's grandmother for lunch. As they prepared for the trip, Ava's mother visited a bank in New York. She wanted to be ready to pay for lunch in Canada. What was she MOST LIKELY doing at the bank?

• requesting a Canadian passport

• withdrawing a large amount of US dollars

• applying for Canadian citizenship

• exchanging US dollars for Canadian dollars

Why did the Canadian government enter into the North American Free Trade Agreement?

• to improve trade between North America and Europe

• to protect Canada's domestic industries from competition

• to reduce barriers to trade with Canada's closest neighbors

• to create a common currency to be used in North America