Because the PPF is a straight line in the Ricardian model, Foreign's import demand curve is:

Land can be used to grow commercial Christmas trees or pulpwood. Which is the more "economically efficient" use of the land?

A) Raising commercial Christmas trees B) Raising pulpwood C) Raising a mixed combination of commercial Christmas trees and pulpwood D) It depends in part on the relative prices of Christmas trees and pulpwood.

An expansionary fiscal policy

I. includes an increase in government spending. II. includes tax cuts. III. increases a government budget deficit or reduces a government budget surplus. A) I, II, and III B) I and II only C) I and III only D) II and III only