Which of the following is not one of the four major economic flows linking the U.S. economy with that of other nations?
a. Trade flows.
b. Resource flows.
c. Financial flows.
d. Foreign aid flows.
2. The United States usually runs a __________ in its international trade in goods and a __________ in its international trade in services.
a. Deficit, deficit.
b. Deficit, surplus.
c. Surplus, deficit.
d. Surplus, surplus.
3. A country that has an absolute advantage over another country in producing a product __________ a comparative advantage as well.
a. Will have.
b. May have.
4. True or False: Consider the exchange rate between the U.S. dollar and the Japanese yen. If the exchange rate changes from $1 = ¥80 to $1 = ¥105, then the dollar has “appreciated” in value against the yen.
5. Tariffs and quotas __________ domestic producers but __________ domestic consumers.
a. Help, help.
b. Help, harm.
c. Harm, help.
d. Harm, harm.
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