Rika's opportunity cost of producing 100 t-shirts is 50 jackets. Jeff's opportunity cost of producing 75 t-shirts is 25 jackets. Who should specialize in jackets?

Refer to the given data. At the $100 level of income, the average propensity to save is:

A.  .10.
B.  .20.
C.  .25.
D.  .90.

If the opportunity cost of producing a good domestically is less than the opportunity cost of purchasing it on the world market, a country can gain by

A. decreasing production and increasing exports. B. increasing production and decreasing imports. C. increasing production and decreasing exports. D. decreasing production and increasing imports.