A market system is not considered an effective way of controlling self-interest

Suppose the current exchange rate between the euro and the United States dollar is 1.15 euros per dollar. If interest rates in the United States increase and interest rates in Europe remain unchanged then

A) the demand for dollars will increase. B) the demand for dollars will decrease. C) the demand for euros will increase. D) None of the above answers is correct.

When the principle of comparative advantage is used to guide trade, then a country specializes in producing only

A) goods with the highest opportunity cost. B) goods with the lowest opportunity costs. C) goods for which production takes fewer worker-hour than another country. D) goods for which production costs are more than average total costs.