The classical model is one of the best that economists have for capturing the rapidly changing nature of the supply and demand for labor and ultimately for explaining recessions

If the U.S. imposes a quota on cotton, then

a. both exports and imports of other goods will rise. b. exports of other goods will rise and imports of other goods will fall. c. exports of other goods will fall and imports of other goods will rise. d. both imports and exports of other goods will fall.

Answer the following statement(s) true (T) or false (F)

1. On average over all goods, it has been found that as people become wealthier, expenditures for higher quality grow more rapidly than expenditures for increased quantity. 2. The cross elasticity between California and Florida oranges is likely to be negative because they are substitutes for one another. 3. If the cross price elasticity of demand is negative, then the two goods under consideration must be complements. 4. If the cross-price elasticity for oranges with respect to apples is 1.2 and the price of apples increase by 5%, then we can expect the quantity demanded of oranges to decrease by 6%.