The idea behind comparative advantage reflects the possibility that one party
a. may be able to produce something relatively more efficiently than another.
b. may be able to produce something at a lower opportunity cost than another.
c. may be able to produce something more cheaply than another

Tax increases on business income decrease aggregate demand by decreasing

A) business investment spending. B) government spending. C) consumption spending. D) wage rates.

If a country voluntarily agrees to have its companies import more goods from another country, the country has

A) a voluntary import expansion (VIE) agreement. B) a voluntary restraint agreement (VRA). C) a mandated tariff. D) a mandated agreement.