When each of two countries can produce one good with fewer resources than the other, each is said to have an absolute advantage in that good

The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total imports of cherries to the United States from other nations equals

A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.

The theorists of the rational expectations school:

a. favor monetary rules because they believe individuals know too little about how the economy works b. favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed. c. are those who favor an "active approach" to policy and reject monetary rules. d. oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy. e. do not believe in implementing discretionary policies.