If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then
A. it is reasonable to expect that specialization will benefit both countries, but trade will not.
B. it is reasonable to expect that specialization and trade will benefit both countries.
C. neither country has anything to gain from specialization and trade.
D. it is reasonable to expect that trade will benefit both countries, but specialization will not.
Answer: B
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Keynes thought that expectations are
a. a function of current income. b. predictable and stable. c. an important determinant of consumption. d. unpredictable and influences planned investment.
Janelle earned a salary of $62,000 in 2004 and $80,000 in 2014 . The consumer price index was 126 in 2004 and 170 in 2014 . Janelle's 2004 salary in 2014 dollars is
a. $45,953. b. $89,280. c. $107,953. d. $83,651.