-----1

The region of the world from which the U.S. imports the most is ________; the region of the world to which the U.S. exports the most is ________.

Group of answer choices

the European Union; Canada

OPEC; Central and South America

the Pacific Rim; the Pacific Rim

the Pacific Rim; Mexico

-------2

The U.S. economy is currently financing its trade deficit by:

Group of answer choices

selling assets such as stocks, bonds, and real estate to foreign investors.

relying on foreign aid.

retiring stocks and bonds held by foreigners.

buying foreign assets such as stocks, bonds, and real estate.

-----3

A tax placed on an internationally traded good is called:

Group of answer choices

a tariff.

a voluntary restraint agreement.

an embargo.

a regulatory trade restriction.

-----4

Embargoes are usually established for:

Group of answer choices

economic reasons.

only a few weeks at a time.

international policy reasons.

charitable reasons.

------5

One important reason that restrictions on international trade exist is that the:

Group of answer choices

large groups of producers who may be injured by trade often have more political influence than the small number of consumers who would benefit from freer trade.

large groups of consumers who may be injured by trade often have more political influence than the small number of producers who would benefit from freer trade.

small groups of producers who may be injured by trade often have more political influence than the large number of consumers who would benefit from freer trade.

small groups of consumers who may be injured by trade often have more political influence than the large number of producers who would benefit from freer trade.

----6

Two important explanations for trading patterns that often do not reflect inherent sources of comparative advantage are:

Group of answer choices

strategic trade policies and voluntary restraint agreements.

economies of scale and economies of scope.

gains from trade and learning by doing.

learning by doing and economies of scale.

------7

An argument that can be made in favor of restricting trade through the use of ________ is that to do so raises revenue for the government.

Group of answer choices

embargoes

regulatory trade restrictions

tariffs

quotas

------8

Economists generally oppose trade restrictions because:

Group of answer choices

international trade promotes competition.

few people consider the national security implications of free trade.

free trade is addictive.

trade restrictions increase total output.