As a country develops economically, what changes usually take place in the goods it exports?
A. Exports go from being diversified to being specialized in whatever the country finds to be its comparative advantage.
B. Raw materials and agricultural products decline in importance and are replaced by services and manufactured goods.
C. Services and manufactured goods decline in importance and are replaced by raw materials and agricultural products.
D. There is little change because comparative advantage does not change.
Answer: B
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If (X ? IM) < 0, then capital inflows
a. will be zero. b. will be greater than zero. c. will be less than zero. d. can be zero, positive, or negative.
The U.S. price support program, which guaranteed prices for currently grown crops:
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