When factors of production move to better-paying sectors of the economy in the long run after the opening of trade in the country, wages and rents will be bid back to their pre-trade levels.

A surplus of shoes will cause

a. a decrease in the supply of shoes b. a decrease in the demand for shoes c. both a decrease in the supply of shoes and an increase in the demand for shoes d. a decrease in the price of shoes, through a shift of either the supply curve or the demand curve e. a decrease in the price of shoes

When foreign aid is tied to purchases of low-priced food from the donor country, farm prices can drop in the developing countries, hurting poor farmers

a. True b. False