In the two-country, two-commodity model, both countries can gain from trade as long as their relative advantages and disadvantages in producing different goods are different.

When individuals and businesses are permitted to trade freely over a larger market area,

a. wages will decline to the level of the poorest country in the region. b. the monopoly power of business firms will increase. c. they will be able to produce a larger output and consume a more diverse bundle of goods. d. businesses will be able to earn higher profits, but the income levels of individuals will decline.

What is fiat money? Why is fiat money important in the United States today?

What will be an ideal response?