If the price level rises by 4 percent in a year and nominal wages increase by 2 percent, then real wages will:

A change in the price of one good leads to all of the following, except one. Which is the exception?

a. a change in the slope of the budget line b. a new point of consumer utility maximization c. a change in the trade-off between the two goods d. a change in the marginal utility of each unit of the good e. a change in the marginal utility per dollar spent on the good

Which of the following statements is true?

A. Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost of producing it B. Comparative advantage means that a nation can gain from trade only if it has a lower labor productivity than its trading partner C. Specialization will be complete among nations when opportunity costs increase as the nations produce more of a particular product D. Specialization will be less than complete among nations when opportunity costs increase as the nations produce more of a particular product