In the short run, it is impossible for an expansion of output to cause an increase in:
a. ATC

The market for smartwatches has begun to grow, due in part to the success of the Apple Watch

Following the successful launch of the Apple Watch in 2015, companies such as Samsung, Sony, and LG have all developed products to compete with the Apple Watch. The smartwatches introduced to compete with the Apple Watch would be considered A) complements to the Apple Watch. B) substitutes for the Apple Watch. C) normal goods compared to the Apple Watch. D) inferior goods compared to the Apple Watch.

When two countries specialize in the production of different goods and trade with each other, it is most likely each country will

A) export the goods in which it has a comparative advantage. B) export the goods in which it has an absolute advantage. C) import the goods in which it has a comparative advantage. D) import the goods in which it has an absolute advantage.