True or False:
1. Although the importance of the international sector varies enormously from place to place, the volume of international trade increased substantially.
2. U.S. imports are considered a credit item in the balance of payment because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S. buyers.
3. Our imports provide the means by which foreigners can buy our exports.
4. Nations’ imports and exports of services are the largest component of the balance of payments.
5. When the United States runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the United States.
6. When the United States runs a trade deficit in goods, it must run a trade surplus in services.
7. In the global economy, imports equal exports because one country’s exports are another country’s imports.
8. In voluntary trade, both participants in an exchange anticipate an improvement in their economic welfare.
9. An area should specialize in producing and selling those items in which it has an absolute advantage.
10. Differences in opportunity costs provide an incentive to gain from specialization and trade.