POB Chapter 3.1 Review

Which of the following situations represents an absolute advantage? Saudi Arabia in fresh fish production, Honduras in banana production, Canada in rice production, Norway in orange and grapefruit production

Which of the following products is NOT imported to the United States in any great quantity?
milk,
oil,
coffee,
silk

The amount a country owes to other countries is called

Which of the following would likely cause the value of the dollar to RISE?
an increased U.S. trade deficit,
higher U.S. interest rates,
lower U.S. inflation,
Saudi Arabia doubles the price of the oil it sells the United States

A ____ occurs when a country sells more to other countries than it buys from other countries.

Exists when a country can produce a good or service at a lower cost than other countries.

The cost of using someone else’s money.

Items sold to other countries.

Exists when a country specializes in the production of a good or service at which it is relatively more efficient.

Occurs when a country buys more than it sells.