Resources and Trade — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. What happens to price when supply is high and demand is low?
A) Price goes up
B) Price goes down
C) Price stays the same
D) Price doubles
When supply exceeds demand, sellers lower prices to move excess goods.
2. Which pair shows one renewable and one nonrenewable resource?
A) Coal and oil
B) Wind and solar
C) Trees and coal
D) Gold and silver
Trees are renewable (can be replanted); coal is nonrenewable (fossil fuel).
3. A US company ships cars to Europe. The cars are an example of which term?
A) Import
B) Export
C) Demand
D) Supply
Goods sent from the US to another country are exports.
4. Which resource type includes buildings, tools, and equipment?
A) Natural resources
B) Human resources
C) Capital resources
D) Renewable resources
Capital resources are manufactured goods (buildings, tools, machinery) used in production.
Part B: Fill in the Blank
Write the correct answer on each line.
1. The law of supply and demand explains how prices are set in a market.
The law of supply and demand explains that prices are determined by how much of a good is available and how much people want it.
2. A renewable resource can be replaced by nature in a short time.
Renewable resources like sunlight, wind, and trees can be naturally replenished.
3. The United States exports products like airplanes, machinery, and grain.
The US is a major exporter of agricultural products including grain (wheat, corn, soybeans) as well as manufactured goods.
4. When stores stock too much of a product, they have a surplus of supply.
A surplus means more of a product is available than people want to buy at the current price.
5. Consumers buy goods; producers make goods.
Producers manufacture or create goods; consumers purchase and use them.