______________that we buy from people in other countries and _____________ that we sell to people in other countries.

Imports are the goods; exports are the goods
Exports are the goods and services; imports are the goods and services
Imports are the goods and services; exports are the goods and services
Exports are the goods; imports are the goods

The balance of trade is the value of _______ minus the value of _______.

net exports; net imports
exports; imports
imports; exports
net imports; net exports

In 1998, the U.S. balance of trade was _______ $170 billion and _______ exceeded _______ by $170 billion.

negative; net imports; net exports
positive; net exports; net imports
positive; exports; imports
negative; imports; exports

When a country produces a good at a lower opportunity cost than any other country, it has _________________.

an absolute advantage
a comparative advantage
a trading advantage
a free-trade advantage

The country of Theta has a comparative advantage in the production of grapes, but not in the production of jeans. If Theta increases its production of grapes, decreases its production of jeans, and trades internationally, then Theta ___________________.

will consume at a point on its production possibilty frontier
will have to consume more grapes
will lose because wages in other countries are lower
will consume at a point outside of its production possibilty frontier

Governments protect domestic industries from foreign competition by _____________.

keeping the minimum wage low
using tariffs and nontariff barriers
discouraging union membership
encouraging agreements like NAFTA

A tariff is a tax that is imposed by the _______ country when an _______ good crosses its international boundary.

exporting; exported
exporting; imported
importing; exported
importing; imported

The establishment of GATT has resulted in ____________.

a reduction in nontariff barriers since World War II
a reduction in tariffs since World War II
an increase in tariffs since the 1950s
a reduction in tariffs but only since 1970

A _______ specifies the maximum amount of a good that may be imported in a given period of time.

import restriction
legislative restriction
trade restriction
quota

An agreement between two governments in which the government of the exporting country agrees to restrict the volume of its own exports is called a ___________.

voluntary export restriction
voluntary export restraint
voluntary quota
voluntary trade restriction

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