Refer to Table 9-12. Which country has an absolute advantage in producing belts?

A nation's balance of payments can be affected by

A) the country's inflation rate relative to other nations' inflation rates. B) the country's population increases relative to other nations' populations. C) per capita GDP relative to other nations' per capita GDP. D) none of the above.

Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The post trading result (one in which any trade that makes both parties better off than their initial

allocation) will guarantee each person a. nothing b. at least 1 cup of properly made coffee. c. at least 2 cups of properly made coffee. d. exactly 4 cups of properly made coffee.