1. a tariff placed on imported foreign vehicles will have what effect?
A. It will cause foreign car producers to produce more.
B. It will entice Americans to buy more foreign vehicles due to lower costs.
C. It will cause foreign producers to generate higher revenues on the imported Vehicles.
D. It will entice Americans to buy more domestic Vehicles due to the higher price of foreign vehicles.
2. which of the following statements is an example of a practical constraint on trade?
A. production possibilities curves exhibit increasing returns.
B. Transportation and communication costs occur with every trade.
C. Workers in every industry in the trading countries will benefit from trade. D. Small countries may not have any absolute advantages in producing Goods.