An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?

If a tariff is imposed on imports of shrimp into the United States, U.S. consumers ________ and U.S. producers ________

A) lose; lose B) gain; lose C) gain; gain D) gain; are unaffected E) lose; gain

The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to

a. work less than before. b. work more than before. c. possibly work more or less than before. d. work more with a higher level of consumption.