The ground rules, customs, and conventions that govern the behavior of market participants are often referred to as institutions

Assume that transportation costs are especially high for Widgets in the two-country, two-product Ricardian model, and Country A enjoys a comparative advantage in Widgets, then

A) country B must also enjoy a comparative advantage in Widgets. B) country B may end up exporting Widgets. C) country A may switch to having a comparative advantage in the other good. D) country A will still export Widgets. E) Trade may be impossible between the two countries.

All of the following will cause a shift in the supply of smartphones EXCEPT

A) a decrease in the prices of smartphones. B) an increase in the cost of producing smartphones. C) a per-unit government subsidy on the production of smartphones. D) a decrease in the number of smartphone manufacturers.