1. Explain how through trade a country can consume at levels beyond the reach of its production possibilities.2. Why do countries place restrictions on international trade?3. What is the difference between a tariff and a quota?4. The Case in Point on America’s shifting comparative advantage suggests that the United States may have a comparative advantage over other countries in the production of high-tech capital goods. What do you think might be the sources of this advantage?5. I know a lawyer who can type 100 words per minute but pays a secretary $10 per hour to type court briefs. But the secretary can only type 50 words per minute. I have told my lawyer friend a hundred times she would be better off doing the typing herself, but she just will not listen.” Who has the better part of this disagreement, the lawyer or the friend? Explain.

1. Explain how through trade a country can consume at levels beyond the reach of its production possibilities.2. Why do countries place restrictions on international trade?3. What is the difference between a tariff and a quota?4. The Case in Point on America’s shifting comparative advantage suggests that the United States may have a comparative advantage over other countries in the production of high-tech capital goods. What do you think might be the sources of this advantage?5. I know a lawyer who can type 100 words per minute but pays a secretary $10 per hour to type court briefs. But the secretary can only type 50 words per minute. I have told my lawyer friend a hundred times she would be better off doing the typing herself, but she just will not listen.” Who has the better part of this disagreement, the lawyer or the friend? Explain.