Import tariffs in the United States are likely to reduce U.S. exports, both because of the resulting decrease in foreign earnings of dollars from exports to the United States and because of the likelihood of increases in other countries' import restrictions against U.S. goods.
a. True
b. False
Indicate whether the statement is true or false
Question 2
The theory of comparative advantage is based on:
a. absolute opportunity costs.
b. relative opportunity costs.
c. total costs of production.
d. total costs, including transportation costs.
e. a comparison of marginal cost with average variable costs.
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