Question

“because our trading partners also specialize in the goods and services for which they are relatively more productive, the prices of those goods and services in the united states are lower than if we could only consume what we produce. trade also offers a much greater diversity of consumption opportunities, from year - round fresh fruit to affordable clothing.”
the economic benefits of the u.s. trade, office of the president of the united states, may 2015

1. based on the text, what is a primary outcome of specialization? e.4.1

a. to increase employment, especially among nations that have historically high unemployment numbers
b. to encourage countries to only manufacture goods that have cultural significance, and to share them with the world
c. to allow nations to become more interdependent on trade, while also saving consumers money on a variety of goods

1. using the image, what conclusion can be drawn regarding the trade relationship between the united states and china?

a. china’s biggest exports are computers, cell phones and apparel and footwear.
b. the united states has a negative balance of trade with china.
c. the united states exports more soybeans to china than automobiles.
d. the united states imports twice as many cell phones from china compared to computers.

Explanation:

Question 7

The text states that specialization leads to lower prices (saving consumers money) and more diverse consumption via trade, implying interdependence. Option a's focus on employment isn't in the text. Option b's cultural significance is not mentioned. Option c matches the text's points about trade interdependence and lower prices.

A negative trade balance means imports exceed exports. The US typically imports more from China than it exports, creating a negative balance. Option a describes China's exports but not the relationship. Option c: Need image for exact export data. Option d: Need image for cell phone vs computer imports. Option b is a common conclusion about US - China trade.

Answer:

c. to allow nations to become more interdependent on trade, while also saving consumers money on a variety of goods

Question 8

(Note: Since the image is not provided, we assume common trade data. Typically, the US has a trade deficit with China (negative balance). Option a is about China's exports but the question is about US - China trade relationship conclusion. Option c: US exports more soybeans than automobiles to China is plausible but depends on data. Option d: Without image, but if we go by common knowledge, the US has a negative trade balance with China (imports more than exports). So the most likely answer based on typical trade data is b.)