Although financial capital is relatively mobile as an input, it is subject to a "home bias" in which people prefer to invest within their own country.

The "most favored nation principle" means:

a. that member countries can enter into exclusive favorable agreements with some countries. b. that member countries are barred from forming agreements outside their geographic vicinity. c. that member countries must apply the same low tariffs to all WTO member countries. d. that member countries must apply differential tariffs on imports from non-WTO countries.

An inferior good is defined by an income elasticity less than 1

a. True b. False