Which of the following treaties/agreements would be associated with creating a free trade area for the European Union?

If two or more markets are closely related,

A) a partial equilibrium analysis will tend to overstate the price impact of a supply shock. B) a partial equilibrium analysis will tend to accurately predict the price impact of a supply shock. C) a partial equilibrium analysis will tend to understate the price impact of a supply shock. D) they should be analyzed concurrently but using partial equilibrium analysis alone.

Suppose an LDC is producing on its production possibilities frontier such that it produces a subsistence level of consumption goods and enough capital goods just to replace the existing capital that depreciates. Foreign investment can lead to economic growth for this LDC in which of the following ways?

A. The LDC uses the investment to control inflation. B. The mere presence of more money in the economy will lead to economic growth. C. The LDC invests in consumption goods to move beyond the subsistence level this year. D. The LDC invests in additional capital such that the rate of capital formation exceeds the value of capital depreciated.