New England's exports went primarily to

Suppose that after specializing according to comparative advantage, a country is trading with another nation that also specializes according to its comparative advantage. Which of the following statements are true for the first country?

i. It enjoys gains from trade. ii. It must have an absolute advantage in the production of the good it produces. iii. It is producing at a point beyond its PPF. A) ii and iii B) i and iii C) i, ii, and iii D) i only E) i and ii

When the government cuts the income tax rate, the supply of labor ________, the demand for labor ________, and the equilibrium level of employment ________

A) increases; increases; increases B) increases; decreases; increases C) increases; does not change; increases D) decreases; increases; increases E) increases; does not change; decreases