If exchange rates end up in the right ranges, the free market will drive each country to shift resources into those sectors in which it enjoys a comparative advantage.

Dumping occurs when a foreign monopolist charges ______ price in the domestic market than/as in a foreign market.

a. a lower b. a higher c. the same d. an equivalent

Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100 . If the tax is increased to $2.50 per unit, the deadweight loss from the new tax would be

a. $200. b. $250. c. $500. d. $2,500.