The principle of comparative advantage states that countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners.

Refer to Figure 3-2. An increase in the expected future price of the product would be represented by a movement from

A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.

Which of the following is not a correct statement about individual and group preferences?

a. Individuals have preferences b. Groups have preferences c. Individuals within groups have preferences d. Groups make collective decisions on behalf of their members