Resources and Trade — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. Which of these is a nonrenewable resource?
A) Sunlight
B) Trees
C) Wind
D) Natural gas
Natural gas is a fossil fuel that took millions of years to form and cannot be replaced on a human timescale.
2. If a drought destroys orange crops, what will likely happen to the price of oranges?
A) The price will decrease
B) The price will increase
C) The price will stay the same
D) Oranges will become free
A drought reduces supply while demand stays the same, causing prices to rise.
3. Why do countries trade with one another?
A) They want to use up resources faster
B) No country has every resource it needs
C) Trade makes resources nonrenewable
D) Countries trade only when they have extra money
Countries specialize in producing what they do best and trade for what they lack.
4. Which is an example of a capital resource?
A) A river
B) A teacher
C) A tractor on a farm
D) A bushel of wheat
A tractor is a manufactured tool used to produce goods (crops), making it a capital resource.
Part B: Fill in the Blank
Write the correct answer on each line.
1. Oil, coal, and natural gas are called fossil fuels.
Fossil fuels are nonrenewable energy sources formed from ancient organic matter over millions of years.
2. When many people want the same toy and stores have only a few left, the demand is high.
High demand with low supply leads to higher prices and scarcity.
3. A country that buys more than it sells has a trade deficit.
A trade deficit means a country imports more than it exports.
4. Farmers are an example of human resources.
Farmers provide labor and skills — they are human resources.
5. Solar panels and wind turbines help produce renewable energy.
Solar and wind energy are renewable because they come from inexhaustible natural sources.