Refer to the above table. What does the marginal physical product equal when the amount of labor goes from 12 to 13 units?

A situation in which money buys the same amount of goods and services in different currencies is called

A) a fixed exchange rate. B) purchasing power parity. C) exchange rate surplus. D) exchange rate equilibrium. E) exchange rate balance.

If the United States could produce 1 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if: a. the United States specializes in potatoes because of its comparative advantage in producing potatoes. b. the United States specializes in wheat because of its absolute

advantage in producing wheat. c. the United States specializes in wheat because of its comparative advantage in producing wheat. d. there can be no mutual gains from trade.