A country will gain relatively more from trade when: A. trade is regulated. B. the world price is below the country's opportunity cost of the good. C. the world price is close to the country's opportunity cost of the good. D. the world price is much greater than the country's opportunity cost for the good.

Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen Select one: a. is correct in arguing that the high wages of U.S. workers make it impossible to compete with workers in low- wage countries. b. is incorrect. Free trade raises living standards by increasing economic efficiency. c. is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living. d. is advancing the anti-dumping argument for protectionism.

If the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is consumer surplus at the world price? Producer surplus at the world price? Who benefits from the free trade and who gets hurt If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus from $200 to $300? What does producer surplus do with the price going from $200 to $300? What does the government gain with the tariff? Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?

Economics Question