Economics: The Basics 1st Edition by Mike Mandel

Exercise 7

Say whether each of the following statements is true or false.
a) Trade was a smaller share of the global economy in 2007 than in 1997.
b) A service export occurs when a person or company in the United States provides a service to a resident of the United States.
c) Distance is one natural barrier to trade.
d) Tariffs make imports cheaper to buyers.
e) A quota makes imports more expensive to buyers.
f) One gain from trade is access to natural resources in other countries.
g) When furniture imports increased, the price of furniture in the United States rose.
h) Businesses with high fixed costs and low marginal costs can benefit by selling to a bigger market.
i) If a country has an absolute advantage in a good or service, it will necessarily be an exporter of that good or service.
j) To identify the comparative advantage of a country, you have to know how it compares to its trading partners.
k) The gains from trade are broadly distributed.
l) No individuals are hurt by trade.
m) If a currency depreciates, imports will become cheaper.