Absolute disadvantage in the production of two goods
Problem: Illustrate, using a hypothetical scenario (data), how a nation could have an absolute disadvantage in the production of two goods and could still have a comparative advantage in the production of one of them.
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Question: Explain how it is possible that protectionist policies create more unemployment than free trade. Question: Identify the areas in which the U.S. applies protectionist policies.
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Problem: Why would the US be in favor of tariffs in the early 1800s and be generally (steel tariffs aside) in favor of lowering tariffs today?
Illustrate, using a hypothetical scenario (data), how a nation could have an absolute disadvantage in the production of two goods and could still have a comparative advantage in the production of one of them.
What are the advantages and disadvantages of using import-substitution to accomplish industrialization rather than using government aid and private investment to develop new manufacturing industries?
Are there any similarities between the principle of comparative advantage and absolute advantage? Are there any differences between the two principles? What are the sources of comparative advantage?
Choose one country for analysis and respond to the following questions: Question 1. What type of trade restrictions does this country use?
Lists three arguments for trade restrictions. Since economists do not favor trade restrictions, make the case as an economist against trade restrictions for these three items.
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