A country will export wheat if, with no international trade, ...

[codyclark]

A country will export wheat if, with no international trade, ______.
 
  A. it produces a surplus of wheat
  B. its opportunity cost of producing wheat is below the world price
  C. its domestic price of wheat exceeds the world price
  D. other countries have a shortage of wheat

Question 2

The Federal Reserve cut the federal funds rate seven times between September 2007 and March 2008. What event led the Fed to make these reductions in the federal funds rate?
 
  A) The chairman of the Federal Reserve System persuaded members of the Federal Open Market Committee to lower interest rates in order to reduce the price of oil in international markets.
  B) During this period there was a substantial reduction in the demand for housing.
  C) It was in response to reductions in the discount rate, which was also lowered seven times over the same time period.
  D) Several large investment banks failed during this time period.

[ttt030911]

Answer to Question 1

B If the opportunity cost of producing wheat is below the world price, the country has a comparative advantage in wheat pro-duction.

Answer to Question 2

B

[codyclark]

Gracias!

[amcvicar]

Excellent