1.

Suppose Belgium produces only two goods, chocolate and lace. If Belgium has a comparative advantage in lace, a move toward free trade will

	A.	harm chocolate workers in the short run, benefit lace workers, but benefit the nation as a whole.
	B.	benefit chocolate workers, harm lace workers in the short run, but harm the nation as a whole.
	C.	harm chocolate workers in the short run, harm lace workers, but benefit the nation as a whole.
	D.	benefit chocolate workers, harm lace workers in the short run, but benefit the nation as a whole.

2.

An import ban results in

	A.	an increase in the product's price.
	B.	a decrease in the supply of the product.
	C.	a decrease in the quantity of the product bought and sold.
	D.	all of the above.

3. A possible reason to impose a protectionist policy such as a tariff is to

	A.	aid other nations in developing their own industries.
	B.	slow domestic production.
	C.	protect domestic workers from foreign competition.
	D.	increase the welfare of domestic consumers.

4. A possible reason a nation might impose a protectionist policy such as a tariff is to

	A.	encourage specialization in the good in which the nation has a comparative advantage.
	B.	increase the level of imports.
	C.	protect an infant industry from foreign competitors.
	D.	slow domestic production.