Suppose that when the price rises by 10% for a particular good, the quantity demanded of that good falls by 20%. The price elasticity of demand for this good is equal to 2.0

When the U.S. interest rate rises, the demand for U.S. dollars ________ and the exchange rate ________

A) increases; falls B) does not change; rises C) increases; rises D) decreases; falls E) decreases; rises

Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing. Therefore,

a. Jan must have an absolute advantage in piano tuning b. Eileen must have an absolute advantage in shoe polishing c. Jan must have a lower opportunity cost of shoe polishing d. Eileen must have an absolute advantage in shoe polishing and in piano tuning e. Eileen must have an absolute advantage in piano tuning