Suppose rice can be produced in country X at a lower cost than in ...

[piesebel]

Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:
 a. destroy the rice market in both countries.
  b. drive X to specialize in rice and Y to specialize in tuna.
  c. drive Y to specialize in rice and X to specialize in tuna.
  d. cause both X and Y to reject international specialization.
  e. result in lower total output of rice and tuna.

Question 2

The classical economists argued that the production of goods and services (supply) generates an equal amount of total income and, in turn, total spending. This theory is called:
 a. Keynes' General Theory.
  b. Say's Law.
  c. the animal spirits theory.
  d. the law of autonomous consumption.

[aidanmbrowne]

Answer to Question 1

b

Answer to Question 2

b

[piesebel]

Thank you

[aidanmbrowne]

Happy to help you