Rose has a higher opportunity cost of spending her time writing computer programs than Sam does. Sam has a higher opportunity cost of spending his time selling than Rose does. Sam has a lower opportunity cost of spending his time selling than Rose does. Rose should specialize in sales. The United States may have a comparative advantage in pharmaceuticals because of a. weather conditions.
Protectionist policies tend to a. protect foreign producers selling in domestic markets.
A tariff is a a. tax on goods exported from a country. When the United States imposes a tariff on imported cars, U.S. consumers pay a. less for imported and more for domestically produced cars. The effect of a voluntary restraint agreement is that a. domestic firms act like perfectly competitive firms and increase output and lower prices. Japanese automobile producers received higher revenue. Japanese automobile producers began to open up car factories in the United States in order to avoid the voluntary restraint agreement.