Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will

The power of the supply and demand model lies in its ability

A) to generally predict how price and quantity will change with supply and demand shocks. B) to precisely predict the impact of government regulations on quantity and price. C) to precisely determine the difference between price ceilings and price floors. D) to generally predict how profit motive impacts the distribution of goods and services.

Because economists have different values, like everyone else, they

a. tend to be self centered, so positive economics is impossible b. ignore politics c. use abstraction to be realistic d. may disagree, even though economic theory is based on positive statements e. try to be right all the time