Related to the Economics in Practice on page 3: According to the Economics in Practice, due to the opportunity cost differential, one would expect ________ children at school when the rains have been plentiful in rural India, and ________ children at school when rural India is suffering from a drought.

A combination of declining real GDP and rising price level is referred to as

A) a trough. B) deflation. C) stagflation. D) a depression. E) an expansion.

The United States can produce both grain and oil more efficiently than Mexico can, but the United States can produce grain more efficiently than oil. Therefore, according to _______ , a basis for trade exists between the two countries.

A) free trade B) demand C) supply D) comparative advantage