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

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

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

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

In 1998, the Canadian balance of trade was _______ $13 billion and _______ exceeded _______ by $13 billion.

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

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

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

Governments protect domestic industries from foreign competition by _____________.

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

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

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

The establishment of GATT has resulted in ____________.

an increase in tariffs since the 1950s
a reduction in nontariff barriers since World War II
a reduction in tariffs since World War II
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.

trade restriction
import restriction
quota
legislative restriction

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 quota
voluntary export restriction
voluntary export restraint
voluntary trade restriction

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