Television commentator B makes the following statement: “Tearing down tariff and other protections for American producers from competition with low-wage countries can only reduce the number of jobs in the United States.†Comment using economic theory.
Country M can produce 50 million bicycles or 60 million refrigerators per year. Country N can produce 75 million bicycles or 50 million refrigerators per year. The production possibilities curve for each country is linear.
 a. What is the opportunity cost of bicycles in each country? What is the opportunity cost of refrigerators in each?
 b. Which country has a comparative advantage in producing bicycles? Why?
c. Should these two countries trade? If not, why not? If so, which country would produce bicycles and which country would produce refrigerators?
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