The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus

Feenstra and Taylor describe the "magnification effect" of trade. This effect describes how:

a. workers tend to complain more about trade than is justified. b. owners of capital can "magnify" their earnings if they are able to trade. c. small changes in relative prices as a result of trade lead to larger longrun changes in the real wage or rental of factors. d. unemployment is a big problem among workers but not capital because workers have to move when they are laid off.

In 1997, OPEC ministers agreed to a 10 percent increase in oil production. This decision should be expected then to shift the United States's a. AS curve to the right, which would raise the U.S. price level and lower real GDP in the U.S. b. AS curve to the right, which would lower the U.S. price level and raise real GDP in the U.S. c. AS curve to the left, which would lower the U.S. price

level and raise real GDP in the U.S. d. AD curve to the left, which would lower the U.S. price level and real GDP e. AD curve to the right, which would raise the U.S. price level and real GDP