The horizontal intercept of the budget line is:

Refer to the figure above. If this were a voluntary restraint agreement, the welfare costs to the importing country would be

A) $14,000. B) $18,000. C) $38,000. D) $60,000.

After the American Civil War, many prominent Southerners lamented the fact that the South "overproduced" cotton and "underproduced" food. In fact, the South did import a very large percentage of its food. Nevertheless, rather than reduce cotton production and grow more food, Southern farmers did the opposite because

a. they were irrational and distraught over the loss of slavery. b. the South had a comparative advantage in cotton production. c. the North had a comparative advantage in cotton production. d. corn was absolutely cheaper to produce in the North.