Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, then
A) the United States has a comparative advantage in corn production.
B) Mexico has a comparative advantage in corn production.
C) the United States cannot gain from trade with Mexico.
D) the United States has a comparative advantage in auto production.
A
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The equilibrium price under an import quota is below the price that occurs with free trade
Indicate whether the statement is true or false
If the price level in Japan increases more rapidly than the price level in Britain, we would expect
A) interest rates in Japan to lower than interest rates in Britain. B) the Japanese yen to depreciate against the British pound. C) the British pound to depreciate against the Japanese yen. D) Japanese productivity to have increased more rapidly than British productivity.