Price elasticity of demand is measured by the percentage change in quantity demanded divided by the percentage change in income

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,

A) John has an absolute advantage in pizza. B) Allen cannot benefit from trade with John. C) John has a comparative advantage in pizza. D) John cannot benefit from trade with Allen. E) Allen has a comparative advantage in pizza.

Trade benefits a country by

A) increasing available consumption choices. B) reducing the need for specialization in production. C) reducing the relative price of the exported good. D) increasing the real income of all resource owners. E) increasing the wage rate.