Unit 7 Test Draw a circle around the letter of the correct answer. 1. Because people need or want things they cannot get in their own country, we have a. specialization b. tariffs c. international trade 2. If a country has an absolute advantage in the production of some good, the country uses a. few resources to b. many resources to c. fewer resources produce the good produce the good than to produce another good 3. Countries limit trade in order to a. specialize b. protect their own c. protect other countries' businesses businesses -l When a country wishes to punish another country it may limit trade through a. an embargo b. an import quota c. a tariff 1': 5 tariffsand import quotasmake prices of the *rported goods a. higher b. lower c. the same in both Countries 6. The United States has an absolute advantage in the production of a. Wheat, corn, and rice b. wheat, corn, and fish c. wheat, corn, and soybeans 7. The United States has a comparative advantage in the production of a. medicines, steel, and b. steel, airplanes, and c. medicines, plastics, and plastics fertilizers airplanes 8. The largest single export of the United States is a. food b. machinery c. wood 9.The United States is a large importer of a. oil b. wheat c. coal 10.When the United States imports more goods than it exports, it must pay for the difference by a. borrowing b. selling more goods c. balancing trade