The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. The quota on MP3 players will cause domestic producers to

Larger countries will trade more with one another; this is empirically supported by:

a. the intra-industry trade. b. the increasing returns to scale. c. the gravity equation. d. the comparative advantage.

When a Country A's overall balance is positive:

a. The Overall balance cannot be positive. It must be zero. b. Country A's central bank is buying the domestic currency in the foreign exchange market. c. Country A's central bank is buying foreign currencies in the foreign exchange market. d. Country A is losing reserve assets.