Question

What are the main products that the U.S. exports?

Capital intensive goods.

Labor intensive goods.

Textiles, shoes, electronics

Coffee, dairy products, furniture

Question

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.

Question

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.

Question

When free trade is disrupted by trade barriers, the gains from trade are lost.

True

False

Answer 1