Question 1: How would each of the following theories of comparative advantage explain the fact that the United States exports computers?
a. Productivity differences
b. Factor abundance
c. Human Skills
d. Product life cycle
e. Preferences
Question 2: Suppose the world price of kiwi fruit is $20 per case and the U.S. equilibrium price with no international trade is $35 per case. If the U.S. government had previously banned the import of kiwi fruit but then imposed a tariff of $5 per case and allowed kiwi imports, what would happen to the equilibrium price and quantity of kiwi fruit consumed in the United States?