67)Absolute advantage exists only when one country can produce a good at a lower opportunity cost than can another country.

False

True

68)If a tariff is imposed on an imported good

the government imposing the tariff collects the revenue.

consumers pay lower prices.

the government exporting the good pays the tariff.

consumers are not affected.

70)With no trade, the equilibrium price of grapes is $2 per pound in Macroland and $4 per pound in Econoland. After trade opens between the two countries, the price of grapes increases to $3 per pound in both countries. Which statement explains who gains and who loses when this happens?

-Winners include consumers, grape producers, and farm workers in Econoland. Losers include consumers, grape producers, and farm workers in Macroland.

-Winners include consumers in both countries, grape producers in Macroland, and farm workers in Econoland. Losers include grape producers in Econoland and farm workers in Macroland.

-Winners include consumers in Econoland, and grape producers and farm workers in Macroland. Losers include consumers in Macroland, and grape producers and farm workers in Econoland.

-Winners include grape producers in both countries, consumers in Econoland, and farm workers in Macroland. Losers include consumers in Macroland and farm workers in Econoland.

72)Free trade has no costs.

False

True

73)Increasing the costs of shipping by requiring greater inspection of all container ships would not be a constraint on international trade because it would be applied equally to all countries.

True

False