A fall in labor costs will cause aggregate:

In the figure above, an increase in the price of a bag of potato chips would result in the budget line

A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.

Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)

A) The United States has a comparative advantage in bicycle production. B) The United States has a comparative advantage in producing both goods. C) Mexico has a comparative advantage in producing bicycles. D) Mexico has a comparative advantage in producing both goods.