There are no indisputable principles of tax equity

Refer to Figure 13-11. What is the amount of excess capacity?

A) Q3 - Q2 units B) Q3 - Q1 units C) Q4 - Q2 units D) Q4 - Q3 units

If two countries are very different in relative factor abundance, then empirical support for which of the following would less likely?

A) the Factor Price Equalization Theorem B) the Heckscher-Ohlin Theorem C) the Law of One Price D) the Law of Demand E) the Gravity Theorem