The amount by which imports exceed exports.
The amount by which exports exceed imports.
The market value of exports in a given year.
The market value of imports in a given year.
2. What are the main products that the U.S. exports?
Capital intensive goods.
Labor intensive goods.
Textiles, shoes, electronics
Coffee, dairy products, furniture
3.When the overall trade balance is zero:
Exports equal imports
Net exports equal zero.
There is no trade surplus or trade deficit.
All of the above.
4.What is the best argument in favor of free trade?
Aiding infant industries.
Higher consumption possibilities.
All participants in international trade gain a higher standard of living.
An decrease in complaints from import competing industries.
5.When free trade is disrupted by trade barriers, the gains from trade are lost.
True
False
6.Export competing industries are the primary group who oppose free trade.
7.Comparative advantage is whan a country can produce goods at a lower absolute cost in terms of dollar expenditures.
8.Tarriffs are a tax on exports.
9.An embargo is a prohibition on trade.
10.The most important thing you can learn form this chapter is that free trade benefits everyone.
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