The input-substitution effect associated with an increase in the wage implies that as the wage increases, a firm will substitute other inputs for the relatively expensive labor.

A derivative is a:

a. contract derived from a spot market rate. b. fixed exchange rate. c. flexible exchange rate. d. contract between firms for foreign currency.

A country has a comparative advantage when the opportunity cost of producing a good in terms of:

a. the monetary value of other forgone goods is lower than that of other nations. b. the monetary value of other forgone goods is greater than that of other nations. c. forgone output of other goods is higher than that of other nations. d. forgone output of other goods is lower than that of other nations. e. forgone output of other goods is equal to that of other nations.