The United States experienced a deep recession between 2007 and 2009. Which type of unemployment would most likely increase during that period of recession?

Which of the following statements is true?

A) The principle of comparative advantage provides a basis for trade when two nations have the same opportunity cost of producing a good. B) The principle of absolute advantage provides a basis for the determination of the terms of trade between two trading nations. C) The principle of absolute advantage forms the basis of trade when a nation can produce more of all the goods and services compared to the other nations. D) The principle of comparative advantage provides a range of prices within which trade will occur.

Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should

A) keep production at 20 thousand pounds. B) increase production to the output rate indicated by point d. C) decrease production to the output rate indicated by point a. D) increase production to the output rate indicated by point e.