1. Explain the important difference between absolute and comparative advantage.

2. Explain why nations should specialize in production of the goods in which they have a comparative advantage.

3. Explain why different nations have comparative advantages in different goods.

4. Identify the gainers and losers from free trade.

5. Explain why anti-trade policy biases exists, and describe the antidotes to such policy biases.

6. Evaluate the arguments for protectionism.

7. Show how tariffs and quotas can be used to restrict trade.