A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts

A country's factors of production include its:

a. capital. b. natural resources. c. labor, capital, and natural resources. d. labor.

Which of the following has been confirmed by empirical tests of the Ricardian model?

A) All predictions of the model for a multi-product, multi-country world are highly unrealistic. B) The existence of nontraded goods results in a high degree of specialization among countries. C) International trade has no impact on income distribution. D) The unimportance of economies of scale as a cause of trade. E) Companies tend to export goods in which they have a relatively high level of productivity.