1. What happens when one country imports more than it exports?

a. IT HAS A TRADE DEFICIT

b. IT HAS A TRADE SURPLUS

c. ITS CURRENCY GETS STRONGER

d. IT MUST INCREASE EXPORTS NEXT YEAR TO BALANCE OUT

2. Which group would be the most likely to propose a new trade restriction?

a. BUSINESS OWNERS WHO COULD POTENTIALLY PROFIT

b. CONSUMERS FIGHTING AGAINST HIGH PRICES

c. INTERNATIONAL FREE TRADE ORGANIZATIONS TO BALANCE OUT TRADE DEFICITS

d. BOTH A AND B

3. If a government wants to provide a short-term stimulus to its economy, what will it most likely try to do?

a. NEGOTIATE A FREE-TRADE DEAL WITH ITS NEIGHBORS

b. BUY OTHER CURRENCIES TO WEAKEN ITS OWN CURRENCY

c. BUY BACK ITS OWN CURRENCY TO STRENGTHEN IT

d. ADD A NEW TARIFF TO SUPPORT A SMALL INDUSTRY THAT IT HOPES TO SPECIALIZE OVER TIME