Suppose the CPI in 1950 was 24.1 and the CPI in 1975 was 53.8 . When Ken's income rose from $10,000 per year in 1950 to $20,000 per year in 1970, Ken's standard of living improved between 1950 and 1970

If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________

A) surplus; rise B) surplus; fall C) shortage; fall D) neither a shortage nor surplus; not change

The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs

a. True b. False Indicate whether the statement is true or false