Josh runs a landscaping business in Vermont and decides to hire two people in India to maintain his bookkeeping for him electronically. Josh can pay them much less than he would pay a bookkeeper in the U.S., and the workers enjoy a higher quality of life in India thanks to their jobs with Josh's company. Josh's actions are an example of:

If two countries with diminishing returns and different marginal rates of substitution between two products were to engage in trade, then

A) the marginal rates of substitution of both would become equal. B) the shapes of their respective production possibility frontiers would change. C) the larger of the two countries would dominate their trade. D) the country with relatively elastic supplies would export more. E) the opportunity costs for the smaller country would increase.

The equation for the consumption function maps out a(n)

a. upward sloping straight-line (linear) curve b. downward sloping straight-line (linear) curve c. horizontal (straight-line or linear) curve d. rectangular hyperbola e. vertical (straight-line or linear) curve