You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
A. autarky<br />
B. absolute advantage<br />
C. comparative<br />
disadvantage<br />
D. comparative advantage<br />
Question 4 of 205.0/ 5.0 Points<br />
Which of the following statements is true?<br />
A. Free trade will benefit all workers in a nation equally.<br />
B. As a result of specialization some workers will be displaced and harmed in the short run by<br />
free trade.<br />
C. Free trade leads to lower wages for all workers in both nations.<br />
D. Specialization will result in a decline in an industry, and none of those workers will be able<br />
to find other jobs.<br />
Question 5 of 205.0/ 5.0 Points<br />
A possible reason a nation might impose a protectionist policy such as a tariff is to __________ .<br />
A. help domestic firms establish a world monopoly in a particular market<br />
B. increase the level of imports<br />
C. encourage specialization in the good in which the nation has a comparative<br />
advantage<br />
D. increase the welfare of domestic consumers<br />
Question 6 of 205.0/ 5.0 Points<br />
Suppose the nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only<br />
teapots, it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day. What is the<br />
opportunity cost of 1 teapot in Arcadia?