STUDY GUIDE COMPREHENSIVE REVIEW WITH
SOLVED QUESTIONS 2026
◉Tariffs can . Answer: hurt domestic industries
◉Comparative advantage . Answer: can produce a good/service at a
lower opportunity cost than other countries
◉Absolute advantage . Answer: can produce more of a good
◉Nations should specialize in . Answer: goods/services when they have
a comparative advantage
◉balance of payments . Answer: account of trade for an economy
◉current account . Answer: purchases of goods and services between
countries
◉when imports are greater than exports there is a . Answer: current
account deficit