The+Answers

1. When deciding who would become importer or exporter, what is the criteria? we must consider comparative advantage. If the country has comparative advantage producing the good, then it would become exporter. If it does not, then it would become importer

2. When we export goods, the quantity and price a. increase

3. Fill in the Blank below: Tariff reduces the well-being of the society because it decreases the _consumer surplus__or__ total surplus___

4. Name one argument for government restriction and explain why it may not work. The national security argument says that the country should not become dependent on other countries for goods, but economists say that it is very unlikely that people would argue for government restriction because of national security.