Patterns of trade among nations are primarily determined by
a. cultural considerations.
b. political considerations.
c. comparative advantage.
d. differences in the income elasticity of demand among nations.
c
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The base year in the consumer price index (CPI) is:
a. given a value of zero. b. a year chosen as a reference for prices in all other years. c. always the first year in the current decade. d. established by law.
The law of comparative advantage suggests that
a. curtailing U.S. trade with other countries would make U.S. consumers better off. b. everyone would be better off if they were self-sufficient. c. countries will tend to import commodities that they can produce at a relatively low opportunity cost. d. countries will tend to import commodities that they can produce at a relatively high opportunity cost.