World Trade Organization rules allow a government to take actions to control environmental damage caused by its own firms' production.

An example of an aggregate supply shock is

A) the cutoff of oil by the OPEC nations in the early 1970s. B) inflation caused by a surge in demand. C) the increase in the labor force due to the baby-boomer generation reaching working age. D) the increase in candy sales every February.

When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:

a. a comparative advantage in production of the product. b. an absolute advantage in production of the product. c. a higher opportunity cost of producing the product. d. no incentive to import the product, regardless of the cost-price conditions for other products.