Please help me with this,

1.

The cyclical deficit rises during economic expansions.

True

False

4.Increasing trade can increase production by encouraging

inefficiency through specialization.

countries to produce products that come at a high opportunity cost.

efficiency through specialization.

protectionism, like quotas and tariffs.

5.

If Country A can produce both beans and sneakers better and in larger numbers than Country B, Country A has a(n) _____________ over Country B in the production of both goods.

absolute advantage.

great natural and human resources.

large stock of capital.

comparative advantage.

6.If Country B can produce beans at a lower opportunity cost than Country A, then Country B has a(n) _____________ over Country A in the production of beans.

large stock of capital.

great natural and human resources.

absolute advantage.

comparative advantage.

7.The demand for dollars in the foreign exchange market

is fixed by the US government.

is related, at least in part, on the demand for US goods by foreigners.

does not fluctuate year to year.

is related to the US demand for imports.

8.When a budget deficit occurs, the government borrows by issuing treasury bonds.

True

False

9.Trade barriers _____.

decrease gains from trade.

are favored by most businesses.

have generally increased over the last few decades.

reduce the costs of consumer goods.

11.You are planning a trip to London and you need to make your currency exchange this week. You read that the dollar has weakened, or depreciated against the British pound. Your trip just became _____ as a result.

more expensive

less expensive

12.Trade barriers include all EXCEPT the following:

tariffs

quotas

free trade zones

subsidies

13.If the US dollar strengths, or appreciates, relative to the yen, we could expect US exports to become _____ expensive to Japanese consumers and businesses.

less

more