Refer to the information above. What is the approximate value of the multiple of combined physical and human capital that the rich country must have in order to produce 10 times the output per person of the poor country?

Sometimes a change in the real effective multilateral exchange rate has the opposite result from what one would expect. One explanation may be:

a. that buying habits are very strong and firms and consumers continue their behavior despite large changes in prices of imports. b. that price changes do not bring about immediate responses in import or export volume because of contracts, or firms' difficulty in changing suppliers quickly. c. that the theory is fundamentally flawed and does not predict well. d. that there are other factors we are not considering that affect the trade balance.

If a tax is imposed on buyers in a market in which supply is perfectly inelastic, the

A) buyers pay the entire tax. B) sellers pay the entire tax. C) buyers and the sellers both pay a portion of the tax. D) neither the buyers nor the sellers pay the tax.