Question 1

In a strong dollar situation, the U.S. business will

(benefit)

or

(suffer)

while the U.S. consumer will

(suffer)

or

(benefit)

In a weak dollar situation, the U.S. business will

(benefit)

or

(suffer)

while the U.S. consumer will

(benefit)

or

(suffer)

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Question 2

The U.S.

exports

or

imports

more than it

exports

or

imports

causing us to have a trade

deficit

or

surplus

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Question 3

Match the trade barrier with its definition.

Group of answer choices

Tariff

forbidding trade

or

tax on imports

or

limit on number of imports

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Quota

forbidding trade

or

tax on imports

or

limit on number of imports

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Embargo

forbidding trade

or

tax on imports

or

limit on number of imports

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Question 4

Match the trade advantage to its definition.

Absolute advantage

country can produce more of a product

or

country can produce a product more efficiently

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Comparative advantage

country can produce more of a product

or

country can produce a product more efficiently

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Question 5

What are 2 arguments in favor of FREE Trade?

Question 6

What are 2 arguments in favor of PROTECTIONISM?