SHORT ANSWER
1. Why are some products elastic and some inelastic?
2. Why do some businesses charge consumers different prices for the goods? ( I.e. airlines,autos)
3. As the manager of a store, why would you be concerned about the elasticity of a product when you are considering a price change?
4. If the price of an inelastic good goes down, what happens to demandthat good? Would this have a positive or negative effect on sales?
5. What is comparative Advantage? What role does it play in international trade?
6. Name and explain two sources of U.S. comparative advantage.
7. What effect does currency depreciation / appreciation have on a appreciation have on a coconut export trade.
8. Define and give an example of the resource curse. 9. State two differences between a tariff and a quota.
10. What is dumping and why was it made illegal?