The following diagram depicts demand for ping pong balls by U.S. consumers and the supply of ping pong balls by U.S. producers. Suppose the world price is 20 per ball. Suppose the U.S. government imposes a tariff of 10 per ball imported into the United States. Suppose now that the tax is lifted. In its place, the U.S. government establishes a quota of 2 million balls.
Brazil has a comparative advantage in the production of shoes.
Brazil exports shoes to Argentina if there is free trade. Brazil has an absolute advantage in the production of shoes. All of the above are true. Suppose the price of meat increases. 1,000 has 50 people unemployed.