The definition of a country that is called a ________ when its stock of foreign financial assets is greater than the foreign-owned holdings of domestic assets

What is gained when people engage in specialization and trade?

A) Specialization and trade allow people to consume outside their individual production possibilities frontiers. B) Specialization and trade allow people to consume at a point on their production possibilities frontiers. C) Specialization and trade allow people to produce outside their individual production possibilities frontiers. D) Specialization and trade allow people to consume inside their production possibilities frontiers. E) There are no gains from specialization and trade.

Using Figure 9.1, explain what a firm would do in the short run if the market price of its product dropped below P1

What will be an ideal response?