If country A has a higher opportunity cost in producing good X than does country B, then we know that
A. country B has an absolute advantage in the production of product X.
B. country B has a comparative advantage in the production of product X.
C. country A has an absolute advantage in the production of product X.
D. country A has a comparative advantage in the production of product X.
B. country B has a comparative advantage in the production of product X.
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Which of the following is FALSE about the International Monetary Fund (IMF)?
A) The IMF was created after the Bretton Woods Conference to help to maintain the international fixed exchange rate system that was introduced. B) The IMF lends to national governments, initially to maintain the fixed exchange rate system, and today to deal with debt or currency crises. C) Multinational corporations can get IMF loans if they agree to invest in economies that are internationally perceived as risky and otherwise unlikely to receive direct foreign investment. D) One of the criticisms of the IMF and other international governmental organizations that deal with the global economy is that their decision making may be biased toward policies that favor industrialized nations.
If the prices paid by farmers increase and the prices received by farmers decrease, then the parity ratio:
A. will necessarily decrease. B. will necessarily increase. C. may either increase or decrease. D. will be unaffected.