Questions: A tax that governments place on imported goods is referred to as a tariff - fee - tariff - quota - sin tax Assume it takes Venezuela 3 hours to produce a batch of apples and 7.5 hours to produce a batch of pumpkins, and it takes the United States 3 hours to produce a batch of apples and 8.5 hours to produce

Question 3:

The answer is "tariff."

Explanation:

• Fee: A general term for any charge or payment, not specific to imports.
• Tariff: Correct. A tariff is a tax imposed by a government on imported goods.
• Quota: A limit on the quantity of goods that can be imported, not a tax.
• $\sin \operatorname{tax}$: Not a relevant term in this context.

Question 4:

To determine which country has a comparative advantage in producing apples or pumpkins, we need to compare the opportunity costs.

• Venezuela:

  • Apples: 3 hours
  • Pumpkins: 7.5 hours
  • Opportunity cost of 1 batch of apples = 7.5/3 = 2.5 batches of pumpkins
  • Opportunity cost of 1 batch of pumpkins = 3/7.5 = 0.4 batches of apples

• United States:

  • Apples: 3 hours
  • Pumpkins: 8.5 hours
  • Opportunity cost of 1 batch of apples = 8.5/3 ≈ 2.83 batches of pumpkins
  • Opportunity cost of 1 batch of pumpkins = 3/8.5 ≈ 0.35 batches of apples

Venezuela has a lower opportunity cost for producing pumpkins, and the United States has a lower opportunity cost for producing apples. Therefore, Venezuela has a comparative advantage in pumpkins, and the United States has a comparative advantage in apples.