Refer to Figure 2-8. Which country has a comparative advantage in the production of pineapples?

A single-price monopolist determines

A) its output but not its price. B) its price but not its output. C) both its output and its price. D) neither its output nor its price.

Suppose a country switches from a fixed to a flexible exchange rate. Which of the following will occur as a result of this change?

A) Monetary policy will become a less effective tool for changing output. B) A given change in government spending will now have a greater effect on output. C) Both fiscal and monetary policy will become more effective in changing GDP. D) Both fiscal and monetary policy will become completely ineffective in changing GDP. E) none of the above