Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. If the countries engage in free trade, Alpha will

Reasons for the ECB acceding to a bailout of troubled financial sectors in Eurozone nations include all the following, EXCEPT:

A) the desire to recognize bad loans by writing them off to protect the fragile fiscal situation of the troubled nations. B) the desire to prevent a loss of confidence in euro-denominated debt. C) a desire to protect core EU banks. D) a desire to protect the collateral assets in the ECB portfolio.

Suppose that real GDP for 2015 was $10,000 billion and real GDP for 2016 was $11,000 billion. What is the rate of growth of real GDP between 2015 and 2016?

A) 1% B) 2% C) 5% D) 10%