Author Question: The fact that the United States exports Budweiser beer and imports Heineken beer can be explained ... (Read 93 times)

bio_gurl · **on:** Jun 30, 2018

The fact that the United States exports Budweiser beer and imports Heineken beer can be explained by:
a. the differences in labor productivity in the U.S. and other countries.
b. the differences in factor endowments in the U.S. and its trading partners.
c. the world price of Budweiser beer is lower than Heineken beer.
d. the fact that production of Budweiser beer in the U.S. is inadequate compared to its demand.
e. the preference for foreign brands of beer by a part of the U.S. population.

Question 2

Reducing existing tariffs on tomatoes would:
a. reduce imports of tomatoes.
b. increase U.S. consumption of domestically produced tomatoes.
c. decrease total U.S. consumption of tomatoes.
d. none of the above