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Import quotas on products will reduce the quantity of the imported products and


A) decrease the price to the consumers.
B) increase the price to the consumers.
C) will not affect the price to the consumers.
D) increase the total quantity of the product consumed.

E) None of the above
F) A) and B)

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The law of increasing opportunity costs limits international specialization.

A) True
B) False

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A high tariff on imported good X might reduce domestic employment in industry Y if


A) X is an input used domestically in producing Y.
B) X and Y are substitute goods.
C) X is an inferior good.
D) Y is an inferior good.

E) C) and D)
F) A) and B)

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A side benefit of international trade is that it links national interests and increases the opportunity costs of war.

A) True
B) False

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As a percentage of GDP, U.S.exports are


A) greater than U.S.imports.
B) about 20 percent.
C) considerably lower than in several other industrially advanced nations.
D) higher than in Canada but lower than in Germany.

E) A) and B)
F) A) and C)

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