In a Situation of Free Trade

question 6

Multiple Choice

In a situation of free trade,

• A)countries with comparative advantage will export more than countries with comparative disadvantage import.
• B)the total quantity of an item exported will be greater than the total quantity imported.
• C)importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
• D)the total quantity of an item exported will equal the total quantity imported.

Recognize the structure and components of a nation's balance of payments.

Understand the effects of trade balances on national economies and currency values.

Evaluate the dynamics of fixed versus flexible exchange rate systems.

Relate economic growth rates to changes in trade balances and currency values.

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Definitions:

Big Five

A theory identifying five fundamental personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism, used to describe human personality comprehensively.

Personality Traits

Enduring characteristics and behaviors that distinguish one individual from another.

Big Five

A model outlining five broad dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

IPIP

The International Personality Item Pool, which is a public domain collection of items for the assessment of personality traits.