4. tariff effects: an overview consider two hypothetical countries, borzia and ardon. both countries produce idevices, and the price of idevices is lower in borzia than in ardon. if borzia and ardon open to trade, producers inborzia would be more likely to lobby their government for an import tariff on idevices in order to protect themselves from foreign competition. which of the following statements about the effects of the tariff compared to free trade are correct? check all that apply. the tariff doesn’t need to increase the price of the imported idevice above its domestic price in order to reduce the price differential. in ardon, consumption decreases and domestic production increases. the tariff always raises the price of imported idevices above their domestic price. in ardon, some workers at retail and shipping companies that import idevices lose their jobs. in borzia, consumption decreases and domestic production increases.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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