If the United States sells computers to Russia, and uses the proceeds to buy shares of stock in Russian companies, the U.S. trade balance ________ and the U.S. financial account balance ________.

The higher the value for the index of intra-industry trade:

a. the lower total trade is for other products. b. the greater percentage of trade in that good is intra industry. c. the more we should be concerned about job loss and outsourcing. d. the higher the gains from trade.

A sunk cost is

A) another term that means opportunity cost. B) a term used to describe the cost of capital that the owners of a firm sink into their business. C) the highest valued alternative that must be given up to engage in an activity. D) a cost that has already been paid and cannot be recovered.