Chapter 21 or 34. International Trade: Pre-Class & In-Class Activities Packet Name/ I.D. Number: ___________________________________________________________ Section: ______________ Date: __________ _____ Part 3. Discussion Questions and Problems 2. If country A is better than country B at producing all goods, will country A still be made better off by specializing & trading? Explain.(Hint: Look at Exhibit 1.) ___________________________________________________________________________________________________________________________ ___________________________________________________________________________________________________________________________ 4. Whatever can be done by a tariff can be done by a quota. Discuss. ________________________________________________________ ____________ ___________________________________________________________________________________________________________________________ 6. Suppose the U.S. government wants to curtail imports. Would it be likely to favor a tariff or a quota to accomplish its objective? Why?______________________________________________________________________________________________________________ _ ____________________________________________________________________________________________________________________________ 8. Even though Jeremy is a better gardener and novelist than Bill, Jeremy still hires Bill as his gardener. Why? _____________________________________ ____________________________________________________________________________________________________________________________ 10. If there is a net loss to society from tariffs, why do tariffs exist? ___________________________________________________ _____________________ _____________________________________________________________________________________________________________________________