Suppose that the capital stock initially is 1000, the depreciation rate is 0.06, and net growth of the capital stock is 120. This makes investment equal to

People have little incentive to contribute to a project if they will be able to enjoy the benefits of the finished project for free

Indicate whether the statement is true or false

Based on Table 3.1, if the world price of computers is four pairs of shoes, then the optimal strategy for each country would be

A) to specialize in shoes. B) to specialize in computers. C) for Mexico to specialize in shoes, and the United States in computers. D) for the United States to specialize in shoes, and Mexico in computers. E) None of the above.