If there are only two goods and these are consumed in fixed proportions, the price elasticities of demand for these two goods will sum to

The Solow residual helps explain growth that derives from

a. increasing the size of the labor force. b. increasing the size of the capital stock. c. increasing the capital-labor ratio. d. anything except increases in the size of the labor force or the capital stock.

Suppose that the United States and Spain both produce cognac and handbags. In the United States, cognac sells for $20 a bottle and handbags sell for $80. In Spain, cognac sells for 30 euros a bottle and handbags sell for 40 euros. Given this information, trade will flow in both directions if the price of a dollar is between

A. 0.67 and 2.0 euros. B. 0.5 and 0.75 euro. C. 2.0 and 3.0 euros. D. 1.5 and 2.5 euros.