If tolls on a toll road can be raised significantly before commuters will consider using a free alternative, then an increase in tolls will result in

If the United States is a "net borrower" from abroad

A) net foreign investment must be positive. B) national saving is less than domestic investment. C) the United States must be exporting more than it is importing. D) net capital flows must be negative.

Trade without serious income distribution effects is most likely to happen

A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing.