For which of the following goods is the income elasticity of demand likely to be largest?

If a French company sells 1000 gallons of Perrier to a U.S. company at 5 euros per gallon, and uses the money to buy stock in a Spanish cork company, how does this affect the French balance of payments accounts?

A) Decrease in financial account; increase in merchandise trade B) Decrease in merchandise trade; increase in financial account C) Decrease in net investment income from abroad; increase in financial account D) Decrease in merchandise trade; increase in net income from abroad

________ is the ability to produce more of a good or service than competitors when using the same amount of resources

A) Absolute advantage B) Comparative advantage C) Trade superiority D) Trade autarky