Question 1
Related to the
Economics in Practice on page 663: Trade ________ comparative advantage of countries and ________ the efficiency of firms.
◦ exploits; improves
◦ exploits; reduces
◦ inhibits; improves
◦ inhibits; reduces
Question 2
Related to the
Economics in Practice on page 664: When a country lifts a quota, imports to that country generally ________ and the price of the affected product in that country generally ________.
◦ increase; rises
◦ increase; falls
◦ decrease; rises
◦ decrease; falls