Country A wants to produce more rice. Unfortunately, it will have to farm less productive land to produce this rice. This fact represents the idea of ______ returns to specialization

Suppose the firms in a perfectly competitive industry are earning positive economic profits

How will these positive profits affect the flow of resources into the industry? How will the equilibrium quantity and price change in the industry because of the profits?

Purchasing power parity is the theory that, in the long run, exchange rates move to equalize

A) the relative purchasing power of currencies across countries. B) nominal interest rates across countries. C) real GDP across countries. D) corporate profits across countries.