Specialization and trade benefits all participants only if:
a. They specialize in those things they have both a comparative and absolute advantage in
b. They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage.
c. They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage.
d. Traders have the same opportunity cost of production
b
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People will spend more if the price level
a. rises because rising prices increase the real value of the fixed quantity of money. b. rises because rising prices decrease the real value of a dollar. c. falls because falling prices increase the real value of a dollar. d. falls because falling prices decrease the real value of a dollar.
The change in the aggregate quantity of goods and services demanded in the U.S. is based on the logic that as the price level falls,
a. real wealth falls, interest rates rise, and net exports fall. b. real wealth falls, interest rates rise, and net exports rise. c. real wealth rises, interest rates fall, and net exports fall. d. real wealth rises, interest rates fall, and net exports rise.