International Trade

Question 1

Which option best explains why countries trade with each other?

Revolt · Accepted Answer

to obtain goods they cannot produce efficiently

Question 2

Why do countries specialize? Check all that apply.to produce more of certain goods and services in a more efficient wayto trade with one another for goods or services they cannot provide on their ownto remain independent without having to rely on others for goods or servicesto produce more goods and services, and to contribute to greater global prosperity

Revolt · Accepted Answer

to produce more of certain goods and services in a more efficient way; to trade with one another for goods or services they cannot provide on their own; to produce more goods and services, and to contribute to greater global prosperity

Question 3

Comparative advantage means the ability to produce a good or service

Revolt · Accepted Answer

with a lower opportunity cost than another country.

Question 4

Which phrase best defines the term “opportunity cost”?

Revolt · Accepted Answer

what a country gives up when it chooses to produce a good or service

Question 5

Jamal and Keisha are considering entering into an agreement to trade tasks.How can specialization of labor benefit Jamal and Keisha? Check all that apply.

Revolt · Accepted Answer

Keisha can specialize in washing cars, because she has the comparative advantage.; Specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days.; Specialization allows them to earn more money.

Question 6

Fill in each blank with the correct number from the table.Based on the data in the table, the opportunity cost for Country A to produce 16 units of petroleum is ⇒ 8, eight units of seafood.The opportunity cost for Country B to produce 8 units of petroleum is ⇒ 8, eight units of seafood.

Revolt · Accepted Answer

⇒ 8, eight: 8, eight

Question 7

The opportunity costs are shown in parentheses in the table. According to opportunity costs, should specialize in petroleum. According to opportunity costs, should specialize in seafood.

Revolt · Accepted Answer

Country A; Selection 1: Country A; Selection 2: Country B

Question 8

Without specializing, the total output for both countries after two days would be 48.If Country A were to specialize in petroleum, its output would be after two days.If Country B were to specialize in seafood, its output would be after two days.

Revolt · Accepted Answer

Part 1: 32, thirty-two, thirtytwo, thirty two; Part 2: 16, sixteen

Question 9

Question 12

Revolt · Accepted Answer

Country B

International Trade Answers

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