Question

An example of an industry that can limit trade and increase prices is:

Question 22 options:

a)

oil.

b)	groceries.

c)

clothing.

d)

sugar.

Restrictions on trade:

Question 21 options:

a)	reduce income, increasing the necessity of child labor.

b)	allow children to leave jobs in agriculture for higher-paying jobs in manufacturing.

c)	lead to higher income for developing countries but not industrialized countries.

d)	reduce child labor by making countries more reliant on adult labor.

Which of the following decreases the volume of international trade?

Question 20 options:

a)	decreasing quotas

b)	stable monetary conditions

c)	increasing tariffs

d)	lower transportation costs

When a country adopts free trade and becomes a net exporter of a good, that good:

Question 19 options:

a)	does not change in price.

b)	becomes more expensive for domestic consumers.

c)	may get cheaper or more expensive for domestic consumers.

d)	becomes cheaper for domestic consumers.

If Tyler and Alex are trading partners, do their gains from trade depend on whether Tyler and Alex live in the same country?

Question 18 options:

a)	It doesn't matter in which country Tyler and Alex live.

b)	It is better if one of them is American and one is not.

c)	It is better if Tyler and Alex are both Americans.

d)	It is better if neither of them is American.

A quota is a stated quality standard that an imported good must reach before it can be allowed into the borders of the importing country.

Question 13 options:

a)

False

b)

True

In poor countries, when child laborers get laid off they:

Question 9 options:

a)	take lower-quality jobs with worse pay.

b)	start attending school.

c)	have more time to play on the playground.

d)	don't experience a serious impact.

Under free trade, some jobs will be lost, but increased consumer spending power means there will be more jobs in other industries. However, these new jobs are:

Question 6 options:

a)	not likely to be good jobs.

b)	more difficult to see than the lost jobs.

c)	less real than the lost jobs.

d)	not very patriotic.

Answer 1

1> A

OPEC is the organization which limits the supply of oil to make the trade more profitable.

2> A

Restrictions on trade leads to lower income for the adults, thus the adults send their children to work, and it increases child labor.

3> C

Increasing tariff discourages international trade by raising the price of the imported goods, thus it decreases international volume of trade.

4> B

If it becomes a net exporter, that means the country is producing at a lower price than international market, so it will drive up the price for the domestic consumers as a part of the supply will go abroad.