People know that the inflation rate will increase from 3% to 5%. As a result...

Which of the following is not a basis for trade between two nations?

a. different skill levels of the labor forces b. one nation's absolute advantage c. a difference in tastes between countries d. economies of scale e. different capital stocks

Those living in the poorest quartile of countries would like to emigrate because:

A. earnings are higher for the same skill level in richer countries. B. the opportunities to gain more education are higher in richer countries. C. the cost of living is lower in richer countries. D. All of these statements are true.