International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone

Joe buys chicken and beef. If the price of beef rises and the price of chicken does not change, Joe will buy ________ for the CPI

A) more beef and create a new goods bias B) more chicken and create a commodity substitution bias C) the same quantity of beef and chicken and create a commodity substitution bias D) less chicken and beef and create a quality change bias E) more chicken and eliminate the commodity substitution bias

If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$75 / (1 + .04)6] + [$2,500 / (1 + .04)6]", which of the following is correct?

A) The face value is $75, the interest rate you need is 1.04 percent, and the coupon will mature in 6 years. B) The face value is $2,500, the coupon is $75, and the coupon will mature in 4 years. C) The face value is $2,500, the interest rate you need is 6 percent, and the coupon will mature in 4 years. D) The coupon is $75, the interest rate you need is 4 percent, and the coupon will mature in 6 years.