Fifty-five delegates from seven states convened at the first Constitutional Convention (1787) to determine whether the central government of the new, independent country should modify its rules and regulations to permit more or less state

"Less demand causes lower prices, and lower prices cause more demand." The above statement shows

A) economic theory can be used to prove just about anything. B) everything depends on everything else. C) prices fluctuate in a free-market situation. D) the speaker has confused himself by saying demand in the first half of the statement when he meant quantity demanded. E) the speaker has confused himself by saying demand in the second half of the statement when he meant quantity demanded.

In the real world, we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. One reasons for this is

A) some countries have more resources than other countries. B) production of most goods involves increasing opportunity costs. C) tastes for many traded goods are similar in many countries because of globalization. D) comparative advantage works better in theory than in practice.