Trade deficits or trade surpluses can work out well or poorly, depending on whether the corresponding flows of financial capital are wisely invested.

Chad's income went from $1000 per week to $1500 per week. As a result he increased his consumption of steak from 1 pound a week to 3 pounds a week. Based on his consumption patterns, the income elasticity of steak for Chad is

A) 2.50. B) -.50. C) .50. D) -1.50.

Countries that are unable to produce goods as efficiently as other countries will never be able to trade

a. True b. False Indicate whether the statement is true or false