Macro Chapter 18 study guide questionsMultiple ChoiceIdentify the choice that best completes the statement or answers the question.____ 1. A tariff or quota that limits the entry of foreign goods to the U.S. market will a. benefit domestic producers in the protected industries and harm domestic consumers. b. increase the nation's real income by protecting domestic jobs from foreign competition. c. reduce the demand for U.S. export goods, lowering employment in export industries. d. do both a and c. ____ 2. According to the law of comparative advantage, a nation will benefit from international trade when it The table outlines the production possibilities of Italia and Slavia for food and clothing. Use it to answer the following question(s). Table 18-1 Italia Slavia Food Clothing Food Clothing 0 16 0 8 2 12 2 6 4 8 4 4 6 4 6 2 8 0 8 0 ____ 3. Refer to Table 18-1. Italia is currently producing 4 units of food and 8 units of clothing. If it increases its production of food by 2 units (up to a total of 6 units of food), its clothing production will ____ 4. Refer to Table 18-1. What is the opportunity cost of producing 1 unit of food in Italia? ____ 5. Refer to Table 18-1. Which of the following is true? a. Italia has the comparative advantage in producing food. b. Italia has the comparative advantage in producing clothing. c. Slavia has the comparative advantage in producing clothing. d. Slavia is the low opportunity-cost producer of clothing.
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