Refer to Table 2-5. If the two countries specialize and trade, who should export lumber?

Which of the following is an example of crowding out?

a. An increase in government spending increases interest rates, causing investment to fall. b. A decrease in private savings increases interest rates, causing investment to fall. c. A decrease in the money supply increases interest rates, causing investment to fall. d. An increase in taxes increases interest rates, causing investment to fall.

What is it called when the price paid for a variable input is less than its marginal revenue product?

A) bilateral monopoly B) monopsonistic exploitation C) monopolistic exploitation D) featherbedding