Question

QUESTION 4

Traditionally, tariffs were used simply as a political tool to protect:

1. Certain social interests.
2. Certain cultural interests.
3. Certain vested economic interests.
4. All of the above.
5. None of the above.

QUESTION 5

The linear production possibilities frontier:

1. Is a less realistic model.
2. Is a more realistic model.
3. Illustrates increasing opportunity costs.
4. Illustrates decreasing opportunity costs.
5. All of the above.

QUESTION 6

The underlying reason why trade benefits both sides is:

1. The government forces it to.
2. Based on absolute advantage.
3. Rooted in the concept of opportunity cost.
4. Tooted from the hills.
5. Muted on the television.

QUESTION 7

Trade really occurs:

1. To keep poor folks down.
2. To get even with the rich.
3. Because of absolute advantage.
4. Because of comparative advantage.
5. All of the above.

Answer 1

4. All of the above.

5.Is a less realistic model.

6.Rooted in the concept of opportunity cost.

7.Because of comparative advantage.