1. When barriers to foreign trade are reduced and firms are able to sell in many different markets, firms are likely to become less specialized and smaller
True or false
2. If a new product from China which is a close substitute for a US made product, now becomes available in the US, this will cause the demand for the US product to become less elastic
True or False
3. If the wage paid to workers in the clothing industry in other countries alls, this will benefit the US consumers because the price of clothing will drop.
True or False
4. There are only a few US firms producing product Z, and they have been successfully operating as a cartel. New firms in Asia now begin to sell product Z in the US . As a result, US consumers will be hurt and US producers will benefit
true or false