What is the difference between the balance of trade and the balance of payments?

Select one:

a.The balance of trade is only part of the balance of payments.

b.The two are different parts of the balance of financial and capital accounts.

c.The two are different parts of the balance of merchandise accounts.

d.The balance of payments is only part of the balance of trade.

If the current account has a deficit, the:

Select one:

a.balance on the financial and capital account must be negative.

b.balance of payments must have a surplus.

c.balance of payments must have a deficit.

d.balance on the financial and capital account must be positive.

According to our formal model of trade base on comparative advantage, countries can expect to gain from international trade as long as they:

Select one:

a.use trade restrictions to reduce competition for domestic producers.

b.specialize according to their comparative advantage.

c.keep production diversified.

d.produce only those goods for which they have a relatively high opportunity cost.