The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The rest of the world has an absolute advantage in the production of ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67

Negative income tax plans have the advantage of increasing work incentives in comparison to existing welfare programs without work incentives

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

For the United States, suppose the value of exported goods is greater than the value of imported goods. This implies that

A) the domestic currency will depreciate. B) the dollar price of foreign currency will increase. C) the country is running a deficit in its balance of trade. D) the country is running a surplus in its balance of trade.