The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________

The biggest weapon of the Federal Trade Commission (FTC) is the "threat" of antitrust action, not action itself

Indicate whether the statement is true or false

Answer the following statements true (T) or false (F)

1) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. Beta would prefer terms of trade at, or close to, 1X = 1½Y. 2) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. If Alpha had produced 20X and 30Y and Beta had produced 30X and 20Y before specialization and trade, then we can say that the gains from specialization and trade are 10X and 10Y. 3) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. There is no basis for trade between Alpha and Beta because Beta has an absolute advantage in the production of both goods. 4) Answer the question on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 20 units of X. By devoting all its resources to Y, Alpha can produce 30Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the given information. Alpha would prefer terms of trade at, or close to, 1X = 2 / 3 Y.