Macro Test 2, Ch. 3: Trade

All of the following are factors that contribute to a​ country's comparative advantage​ except: A. natural resources. B. aging population. C. technology. D. climate.

B. aging population.

Amanda and Raj are both students working​ part-time at an insurance company. Amanda can work only 5 hours a day. Her manager informs her that she needs to review 250 documents and process 250 insurance claims in the next 10 days. Amanda can either review 20 documents in 1 hour or process 15 insurance claims. ​1.) Using the line drawing​ tool, draw a production possibilities curve for Amanda that represents a day of work. Label your curve​ 'Amanda.' The slope of the curve is ____. ​ Her opportunity cost of reviewing one document is ____ ​claim(s).

−0.75 (negative 0.75) 0.75

One reason economists in general ________ favor protectionism is because it ________ prices for consumers and ________ social surplus.

-do not -raises -lowers

If a country had exports of ​$220 billion and imports of ​$350 billion, they would be considered a net ________.

-importer

Many​ service-sector jobs in the United States have moved to other countries where these jobs are done at a fraction of the cost. The outsourcing of jobs overseas is heavily debated by​ politicians, policymakers, and economists in the United States. In the domestic economy when outsourcing​ exists, prices ________​, social surplus _________​, and labor market welfare ________. The economy as a whole benefits from outsourcing if the gain in social surplus is _________ the losses in labor welfare.

-fall -increases -decreases -greater than

Suppose domestic demand is QD=16 − P and domestic supply is QS= P. The world price is​ $2, and the import tariff is​ $3 per unit. Using the triangle drawing tool​, shade consumer​ surplus, producer​ surplus, and the deadweight loss from the tariff. Using the rectangle drawing tool​, shade the government tax revenue from the tariff. Using the information given​ above, the consumer surplus will be ​$____​, the producer surplus will be ​$____​, the government revenue will be ​$____​, and the deadweight loss from the tariff will be ​$____.

60.50 12.50 18 9

If you produce at a point beyond your PPC​, then you are producing at a point that is​ ____________. A. attainable but inefficient. B. attainable if resource prices fall. C. attainable and efficient. D. unattainable.

D. unattainable.

There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of rice. There are 20 workers in the United States and each can produce either 5 computers or 40 tons of rice. Draw the production possibilities curve for each country. ​1.) Using the line drawing​ tool, draw the production possibilities frontier for Thailand. Properly label your line. ​2.) Using the line drawing​ tool, draw the production possibilities frontier for the United States. Properly label your line. In​ Thailand, the opportunity cost of computers is ____ tons of rice. ​ In the United​ States, the opportunity cost of computers is ____ tons of rice. ________ a comparative advantage in the production of computers. In the absence of​ trade, if Thailand consumes 150 tons of​ rice, it can consume ____ computers. In the absence of​ trade, if the United States consumes 50 ​computers, it can consume 400 tons of rice. Someone now proposes that the United States and Thailand enter into a trade agreement. Under this​ agreement, the United States will give Thailand 1010 computers and Thailand will give the United States 120 tons of rice. If Thailand continues to consume 150 tons of​ rice, it will be able to consume computers under this proposal. If the United States continues to consume 50 ​computers, it will be able to consume 440 tons of rice under this proposal. Thailand ________ accept this​ proposal, and the United States ________ accept this proposal.

15 8 -The United States has 10 400 12 440 -should -should

Justin has 5 days in a work​ week; each day he can create either 2 Android apps or 1 Apple app. Pallas also has 5 days to​ work; each day she can produce either 2 Android apps or 3 Apple apps. Using the line drawing​ tool, draw the production possibilities curve​ (PPC) for Justin in the adjacent graph titled​ "Justin's PPC". Label your curve appropriately. Using the line drawing​ tool, draw the production possibilities curve​ (PPC) for Pallas in the adjacent graph titled​ "Pallas's PPC". Label your curve appropriately. Using the mulitpoint curve drawing ​tool, draw the single production possibilities curve​ (PPC) for both Justin and Pallas in the adjacent graph titled​ "Joint PPC". Label your curve appropriately. ​ Justin has a comparative advantage in the production of ________ apps. Which of the following statements explains why Justin has a comparative advantage in the production of Android​ apps? A. His opportunity cost of producing an Android app is equal to​ Pallas's opportunity cost of producing an Android app. B. His opportunity cost of producing an Android app is less than​ Pallas's opportunity cost of producing an Android app. C. His opportunity cost of producing an Android app is greater than​ Pallas's opportunity cost of producing an Android app. Pallas has a comparative advantage in the production of ________ apps. Which of the following statements explains why Pallas has a comparative advantage in the production of Apple​ apps? A. Her opportunity cost of producing an Apple app is equal to​ Justin's opportunity cost of producing an Apple app. B. Her opportunity cost of producing an Apple app is greater than​ Justin's opportunity cost of producing an Apple app. C. Her opportunity cost of producing an Apple app is less than​ Justin's opportunity cost of producing an Apple app.

-Android B. His opportunity cost of producing an Android app is less than​ Pallas's opportunity cost of producing an Android app. -Apple C. Her opportunity cost of producing an Apple app is less than​ Justin's opportunity cost of producing an Apple app.

Consider the figure on the right. The blue line shows how many units of goods A and B a worker in Taiwan can​ produce, and the tan line shows the number of units of goods A and B that a worker in Korea can produce. Does this figure indicate anything about either worker having a comparative or absolute advantage in either​ good? According to the​ figure, ________ has an absolute advantage in the production of good A and ________ has an absolute advantage in the production of good B. Considering comparative​ advantage, ________ has a comparative advantage in the production of good A and ________ has a comparative advantage in the production of good B.

-Korea -Korea -Taiwan -Korea

Consider the following three countries. Each country can produce​ wheat, sheep,​ ore, brick, or wood. The table given below shows the production per worker in each country. Each country has an equal number of workers. ________ has an absolute advantage in the production of wheat. In terms of the opportunity cost of​ sheep, ________ has a comparative advantage in the production of brick. Suppose a fourth country​ (Yellowlia) offers to give a unit of ore in exchange for one of wood. Given this​ information, ________ will prefer to trade with Yellowlia.

-Blueland -Redistan -Blueland and Redistan

When economies open up to free​ trade, trading partners ________ benefit. Why is free trade​ controversial? A. Some individuals may lose. B. Companies always win at the expense of consumers. C. Only countries with an absolute advantage gain. D. Deadweight loss increases.

-always A. Some individuals may lose.

Is it true that a country needs to have an absolute advantage in the production of a good in order to benefit from trade in that​ good? Countries that do not have an absolute advantage in the production of a good ________ benefit from trade.

-can

Texas and Kentucky have the following opportunity cost for the production of wine and cotton. Opportunity Cost of Wine Kentucky=2/3 sacks of cotton Texas=​7/3 sacks of cotton Opportunity Cost of Cotton ​Kentucky=3/2 bottles of Wine Texas=​3/7 bottles of wine The terms of trade range of cotton for wine is ____ to ____. From the above​ table, we can see that Kentucky has a comparative advantage in the production of ________. ​Therefore, ​ Texas, will ________ to Kentucky and ________ from Kentucky. Since Texas is located on the southern coast of the country and Kentucky is situated in the middle part of the​ country, Texas will tend to have a ________ ratio of​ interstate-to-international trade and Kentucky will tend to have a ________ ratio of​ interstate-to-international trade.

2/3 7/3 -wine -export cotton -import wine -lower -higher

The factory gives up being able to manufacture ____ ​unit(s) of a denim jacket for every leather jacket manufactured and it gives up being able to manufacture ____ ​unit(s) of a leather jacket for every denim jacket manufactured by the factory. ​ Given the above production​ schedule, suppose Mr. Alexander gives an order of 144 leather jackets and 280 denim jackets. In this​ case, the factory will require ____ full days to complete Mr.​ Alexander's order.​ (Note: the factory works​ 4-hour days) Suppose the opportunity cost of manufacturing one more leather jacket is 3.2 denim jackets. In this​ case, the opportunity cost of a denim jacket is ____ leather jackets.

5 0.2 25 0.31

Queen Manufacturing Corporation manufactures handbags and clutches for women. It has to figure out its production possibilities in a​ 5-hour day. The following production schedule shows output levels based on the number of hours spent on each of the two​ tasks: Which of the following points represents the most extreme​ trade-offs faced by the Queen Manufacturing​ Corporation? ​(Check all that apply​.) A. 0 Handbags and 20 Clutches B. 10 Handbags and 0 Clutches C. 8 Handbags and 16 Clutches D. 10 Handbags and 20 Clutches A point on the graph that represents ________ is attainable and efficient. A point on the graph that represents ________ is attainable but inefficient. A point on the graph that represents_________ is unattainable.

A. 0 Handbags and 20 Clutches B. 10 Handbags and 0 Clutches 4 handbags and 12 clutches 6 handbags and 4 clutches 8 handbags and 8 clutches

The figure at right shows a production possibilities curve ​(PPC) for Joe. He can spend his time making pizzas or chocolate cakes. For​ Joe, which production points are​ attainable? ​(Check all that apply.​) A. Point A. B. Point B. C. Point C. D. Point D. E. Point E. For​ Joe, which production points are​ efficient? ​(Check all that apply.​) A. Point A. B. Point B. C. Point C. D. Point D. E. Point E. Joe decides to go to baking school and learns to make chocolate cakes faster. ​1.) Using the line drawing​ tool, draw a new PPC where point C is now attainable and efficient. Label your line​ 'PPC2.'

A. Point A. B. Point B. D. Point D. E. Point E. A. Point A. B. Point B.

In which of the following scenarios would a country export a​ good? A. The domestic price for the good is below the world price. B. The domestic demand for the good is lower than the domestic supply. C. The world price for the good is below the domestic price. D. The world demand for the good is lower than the domestic demand.

A. The domestic price for the good is below the world price.

All of the following shift the Production Possibilities Curve outward​ except: A. new competitors in the marketplace. B. changes in productivity growth due to population growth. C. increases in worker education. D. increases in natural resources.

A. new competitors in the marketplace.

Terms of trade is the​ ____________. A. benefit received from trade. B. exchange rate of goods for goods. C. legal document that trading partners sign. D. time required to produce a good or service that is traded. Terms of trade are determined​ ____________. A. by sellers. Your answer is not correct. B. by buyers. C. on the basis of absolute advantage. D. on the basis of opportunity costs.

B. exchange rate of goods for goods. D. on the basis of opportunity costs.

National security concerns might cause a nation​ to: A. increase imports of oil. B. maintain a variety of agricultural industries. C. specialize in the production of one good. D. become reliant on its trading partners.

B. maintain a variety of agricultural industries.

One reason a country might seek to implement protectionist policies could be​ to: A. increase exports. B. participate in foreign trade and investment. C. maintain its​ culture's uniqueness. D. increase imports to satisfy domestic demand.

C. maintain its​ culture's uniqueness.

What is the problem with the argument that infant industries need to be protected from foreign​ competition? A. Foreign companies may do a better job of providing the good or service. B. Changing a comparative advantage is nearly impossible and so the domestic industry will not likely survive anyway. C. Because the world price will continue to​ drop, the domestic industry will never catch up in any case. D. Starting a company in isolation may deprive it of​ "technological spillovers" that its​ competitors, all located near one​ another, may enjoy. E. Since the stock of deadweight losses builds up over​ time, the total lost surplus will never be made up.

D. Starting a company in isolation may deprive it of​ "technological spillovers" that its​ competitors, all located near one​ another, may enjoy.

The figure at right shows the U.S. market for tennis shoes where the U.S. is an importer. The U.S. currently has a tariff on imported tennis shoes. Suppose the U.S. decides to eliminate the tariff. ​1.) Use the line drawing tool to draw a new price line without the tariff. Label this line Pworld. When the tariff is​ eliminated, what happens to the quantity supplied by domestic​ producers? When the tariff is​ eliminated, the quantity supplied by domestic producers _________. When the tariff is​ eliminated, what happens to the quantity demanded by domestic​ consumers? When the tariff is​ eliminated, the quantity demanded by domestic consumers ________. When the tariff is​ eliminated, what is the impact on domestic​ producers, foreign​ producers, and domestic​ consumers? A. Domestic and foreign producers win. Domestic consumers lose. B. Domestic producers and domestic consumers win. Foreign producers lose. C. Foreign producers and domestic consumers win. Domestic producers lose. D. Domestic producers win. Domestic consumers and foreign producers lose.

-decrease -increase C. Foreign producers and domestic consumers win. Domestic producers lose.

Suppose your country imports wheat. The world price of wheat rises from P1 to P2 and your country continues to import wheat. ​1.) Using the line drawing​ tool, draw the original price line for​ wheat, P1. Properly label your line. ​2.) Using the line drawing​ tool, draw the new price line for​ wheat, P2. Properly label your line. Using Figure 1 on the​ right, answer the following questions. When the price​ increased, imports ________. Consumer surplus ________ by ____. ​ Producer surplus ________ by ____. ​ Social surplus ________ by ____.

-decreased -decreased -C-D (negative C minus D) -increased C -decreased D

In each of the following​ cases, determine whether the traded good or service is an export or an import. California wine that is sold in New Jersey is an ________ for California and an ________ for New Jersey. You take a vacation in​ Paris, France. Your vacation is an ________ for the United States and an ________ for France. A construction company in China buys tractors from​ Caterpillar, which is based in Illinois. The tractors are an ________ for China and an ________ for Illinois. You go to your doctor in​ Cincinnati, Ohio, and she takes an​ x-ray of your broken arm. The​ x-ray is read by a technician in​ Mumbai, India, and he sends a report via email to your doctor. The reading is an ________ for India and an ________ for the United States.

-export -import -import -export -import -export -export -import

Consider a market for badminton rackets. Suppose all of the rackets are identical and that the buyers and sellers are​ price-takers. The domestic equilibrium price of a badminton racket in the United States is​ $85 and the world price is​ $100. From the​ U.S.'s perspective, initially the market consists solely of U.S. buyers and sellers. If the U.S. government decides to open its economy to free​ trade, it becomes an ________ of rackets. In this​ case, the U.S. suppliers will ________ their production and the U.S. consumers will ________ their quantity demanded. This situation leads to an ________ of badminton rackets in the U.S. Based on the above​ scenario, which of the following statements regarding winners and losers from free trade is​ true? ​(Check all that apply​.) A. The U.S. buyers are worse off because they are purchasing fewer badminton rackets at a higher price per unit. B. The U.S. producers are better off because they are selling more badminton rackets at a higher price per unit. C. The U.S. buyers are better off because they are purchasing more badminton rackets at a lower price per unit. D. The U.S. producers are worse off because they are selling fewer badminton rackets at a lower price per unit. In the above​ situation, suppose it is possible to tax the producers of a badminton racket and transfer the revenues to the domestic consumers of the racket. In this​ case, the U.S. is _________ as a whole because of trade.

-exporter -increase -decrease -excess supply A. The U.S. buyers are worse off because they are purchasing fewer badminton rackets at a higher price per unit. B. The U.S. producers are better off because they are selling more badminton rackets at a higher price per unit. -better off

Many​ service-sector jobs in the United States have moved to other countries where these jobs are done at a fraction of the cost. The outsourcing of jobs overseas is heavily debated by​ politicians, policymakers, and economists in the United States. In the domestic economy when outsourcing​ exists, prices ________​, social surplus _________, and labor market welfare ________. The economy as a whole benefits from outsourcing if the gain in social surplus is ________ the losses in labor welfare.

-fall -increases -decreases -greater than

The figure at right shows the U.S. market for tennis shoes where the U.S. is an importer. Suppose the U.S. decides to add a tariff to imported tennis shoes. ​1.) Use the line drawing tool to draw a new price line with the tariff that keeps the U.S. as an importer of tennis shoes. Label this line Pworld+tariff. With the​ tariff, what happens to the quantity supplied by domestic​ producers? With the​ tariff, the quantity supplied by domestic producers ________. With the​ tariff, what happens to the quantity demanded by domestic​ consumers? With the​ tariff, the quantity demanded by domestic consumers ________. With the​ tariff, what is the impact on domestic​ producers, foreign​ producers, and domestic​ consumers? A. Domestic and foreign producers win. Domestic consumers lose. B. Foreign producers and domestic consumers win. Domestic producers lose. C. Domestic producers win. Domestic consumers and foreign producers lose. D. Domestic producers and domestic consumers win. Foreign producers lose.

-increases -decreases C. Domestic producers win. Domestic consumers and foreign producers lose.

Kentucky has a production possibilities curve for the production of wine and cotton as shown in the graph. If Kentucky moves its resources increasingly into the production of​ cotton, the opportunity cost of doing so ________ at ________. Which of the following factors will shift the PPC outward in the long​ run? A. The development of a faster computer. B. A military conflict that destroys infrastructure. C. A hurricane demolished a factory. D. The employment of the less educated workforce.

-increases -an increasing rate A. The development of a faster computer.

Assume the opportunity costs for apples and peaches produced by New York and Georgia are as​ follows: Opportunity Cost of Apples New York=5 peaches Georgia=1/7 peaches Opportunity Cost of Peaches New York=1/5 apples Georgia=7 apples The trading price of apples for peaches acceptable to both parties would range​ (high to​ low) from ____ to ____.

0.20 7

The figure at right shows a production possibilities curve ​(PPC) for Joe. He can spend his time making pizzas or chocolate cakes. Using the information in the​ figure, calculate​ Joe's opportunity cost of producing one pizza and his opportunity cost of producing one chocolate cake. Remember that the opportunity cost is how much of one good must be given up to produce one more unit of the other good. ​Joe's opportunity cost of producing one pizza is ____ chocolate​ cake(s). ​ Joe's opportunity cost of producing one chocolate cake is ____ ​pizza(s). ​ ​ Joe's friend Samantha also makes pizzas and chocolate cakes. The figure at right shows the PPC for Samantha. Using the information in the​ figure, calculate​ Samantha's opportunity cost of producing one pizza and her opportunity cost of producing one chocolate cake. ​ Samantha's opportunity cost of producing one pizza is ____ chocolate​ cake(s). ​ Samantha's opportunity cost of producing one chocolate cake is ____ ​pizza(s). Comparative advantage is the ability to produce a certain good at a lower opportunity cost than other producers. Who has the comparative advantage in the production of pizza and chocolate​ cake? A. Samantha has a comparative advantage in​ pizza, and Joe has a comparative advantage in cake. B. Neither has a comparative advantage in either good. C. Joe has a comparative advantage in​ pizza, and Samantha has a comparative advantage in cake. D. Samantha has a comparative advantage in both goods. E. Joe has a comparative advantage in both goods.

0.5 2.0 2.0 .05 C. Joe has a comparative advantage in​ pizza, and Samantha has a comparative advantage in cake.

The figure at right shows a production possibilities curve​(PPC) for Joe. He can spend his time making pizzas or chocolate cakes. Using the information in the​ figure, calculate​ Joe's opportunity cost of producing one pizza and his opportunity cost of producing one chocolate cake. Remember that the opportunity cost is how much of one good must be given up to produce one more unit of the other good. ​ Joe's opportunity cost of producing one pizza is ____ chocolate​ cake(s). ​Joe's opportunity cost of producing one chocolate cake is ____ ​pizza(s). ​Joe's friend Samantha also makes pizzas and chocolate cakes. The figure at right shows the PPC for Samantha. Using the information in the​ figure, calculate​ Samantha's opportunity cost of producing one pizza and her opportunity cost of producing one chocolate cake. ​Samantha's opportunity cost of producing one pizza is ____ chocolate​ cake(s). ​ Samantha's opportunity cost of producing one chocolate cake is ____ ​pizza(s). ​ Samantha's little brother Rahul is also able to make pizzas or chocolate​ cakes, and he is equally good at each. His opportunity cost of producing either pizza or cake is one unit of the other good. ​1.) Using the line drawing​ tool, draw an example of what​ Rahul's PPC would look like. Properly label your line.

0.5 2.0 2.0 0.5

Suppose the world price of Good Z is​ $40. With the assumption of a perfectly competitive​ market, the equilibrium price and quantity demanded of Good Z in Sweden is​ $57.50 and 4.90 million respectively. Once Sweden is open to​ trade, Swedish producers will curb their production from 4.90 million units of Good Z to 2.60 million units and receive the world price of​ $40 per unit. At that​ price, Swedish consumers will demand to 7.40 million units of Good Z. These movements lead to an excess demand of ____ million units of Good Z in Sweden. In this​ case, Sweden is an ________ of Good Z. This added demand does not change the world price because ________. Consider the graph and the after trade situation in Sweden. Which of the following statements are​ true. A. The producer surplus is indicated by the area O.​ Therefore, Swedish producers are worse off because of trade. B. The producer surplus is indicated by the areas O+M. ​Therefore, Swedish producers are better off because of trade. C. The consumer surplus is indicated by the area L.​ Therefore, Swedish consumers are worse off because of trade. D. The consumer surplus is indicated by the areas L+M+N. ​Therefore, Swedish consumers are better off because of trade. For​ Sweden, the overall ________ because of trade are represented by the​ area(s) ____.

4.80 -importer -Sweden is a small buyer of Good Z A. The producer surplus is indicated by the area O.​ Therefore, Swedish producers are worse off because of trade. D. The consumer surplus is indicated by the areas L+M+N. ​Therefore, Swedish consumers are better off because of trade. -gains -N

Who benefits from​ trade? A. Neither nation benefits from trade. B. Nearway​ benefits, but Farway does not benefit from trade. C. Farway​ benefits, but Nearway does not benefit from trade. D. Both nations benefit from trade. Which nation received the better deal in this​ trade? A. Both benefited equally. B. Farway received the better deal. C. Nearway received the better deal. D. It cannot be determined which nation received the better deal with the information given. Would Nearway and Farway ever trade 120120 coconuts for 4040 ​fish? A. ​No, because while Nearway gains from this​ trade, Farway does not. B. ​Yes, because they are both better off. C. ​Yes, because even though Farway is​ indifferent, Nearway is better off. D. ​Yes, because even though Nearway is​ indifferent, Farway is better off. E. ​No, because while Farway gains from this​ trade, Nearway does not.

D. Both nations benefit from trade. C. Nearway received the better deal. E. ​No, because while Farway gains from this​ trade, Nearway does not.

The figure at right shows production possibilities curves ​(PPC) for Joe and Samantha. Each of them can spend time making pizzas or chocolate cakes. Using the information in the​ figure, calculate the opportunity costs of making pizza and chocolate cake for both Joe and Samantha and then complete the table below. ​(Round your responses to one decimal place.​) Opportunity Cost of Pizza Joe=0.5 cakes Samantha=2.0 cakes Opportunity Cost of Cake Joe=2.0 pizzas Samantha=0.5 pizzas Who has the comparative advantage in the production of pizza and chocolate​ cake? A. Samantha has a comparative advantage in​ pizza, and Joe has a comparative advantage in cake. B. Neither has a comparative advantage in either good. C. Joe has a comparative advantage in both goods. D. Joe has a comparative advantage in​ pizza, and Samantha has a comparative advantage in cake. E. Samantha has a comparative advantage in both goods. Joe and Samantha decide to work together and specialize. What will each of them specialize in​ making? Joe will specialize in making ________​, and Samantha will specialize in making _________. Using the figure on the​ right, draw the new PPC when Joe and Samantha specialize and indicate the point on the new PPC where production will occur. ​1.) Using the multipoint curve drawing​ tool, draw the PPC that results when Joe and Samantha work together. Label your curve​ 'Joint PPC.' ​2.) Using the point drawing​ tool, locate the point where production will occur when Joe and Samantha specialize. Label your point​ 'T.'

D. Joe has a comparative advantage in​ pizza, and Samantha has a comparative advantage in cake. -pizza -chocolate cake

How has the pattern of trade changed in the United States since​ 1960? A. Exports have grown faster than​ imports, and the United States has remained a net exporter. B. Exports have grown faster than​ imports, and the United States has become a net importer. C. Imports have grown faster than​ exports, and the United States has remained a net exporter. D. Exports and imports have grown at the same​ rate, and the United States has remained a net exporter. E. Imports have grown faster than​ exports, and the United States has become a net importer. What are the types of goods that are causing the shift in the balance of imports and exports in the United​ States? A. Services have been the primary driver in the shift in the balance of imports and exports in the United States. B. The significant increase in oil exports has played an important role in the shift. C. Manufactured goods have played an important role in the​ shift, as the number of manufactured goods produced has declined. D. Manufactured goods have played an important role in the​ shift, even though the number of manufactured goods has increased.

E. Imports have grown faster than​ exports, and the United States has become a net importer. D. Manufactured goods have played an important role in the​ shift, even though the number of manufactured goods has increased.

With the help of the given graph answer the following​ question: When the nation imposes a​ tariff, the imports of the nation falls to ____. ​However, government revenue increases by ____ and producer surplus increases by ____. This nation may not favor imposing tariffs on imports because​ _______ A. it makes producers worse off. B. it reduces the work load of the government. C. it raises prices for consumers. D. it raises social surplus for consumers. Which of the following nations will be against free​ trade? ​(Check all that apply.​) A. A nation that has the comparative advantage. B. A nation with lax environmental policies. C. A nation who wants to preserve their cultural uniqueness.. D. A​ defense-oriented nation.

Q2-Q3 area D area B C. it raises prices for consumers. C. A nation who wants to preserve their cultural uniqueness.. D. A​ defense-oriented nation.