If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.

According to the shortrun (specificfactors) model, how will FDI affect the return to capital and the return to land in the recipient nation?

a. The returns to land and capital will both decrease. b. The return to land will decrease; the return to capital will increase. c. The return to land will increase; the return to capital will decrease. d. The returns to land and capital will both increase.

A business fluctuation when the pace of economic activity is slowing down is called

A) a reduction. B) a contraction. C) a depression. D) a slowdown.