Which sentence best completes the diagram?A.Natural resources move from poor to rich countries.B.Incomes improve for poor people in all countries.C.Fewer companies have a need for natural resources.D.Local businesses face less international competition.

Which term best completes the diagram?A.Natural resourcesB.InterestC.Goods and servicesD.WagesSUBMITarrow_backPREVIOUS

In each of the following diagrams, the point P indicates a country’s production choice while the point C indicates its consumption choice. Which of the following diagrams represents a country that is producing optimally given the international terms of trade?

Assume two countries: H and F. Each country produces two goods, A and B. Good A is relatively capitalintensive and country F is relatively labor abundant. Consider H and F to be large economies.1. Suppose the amount of labor in country F increases. Using a diagram show how the PPF and theproduction point of country F change.2. Suppose the amount of labor in country F increases.i. Using a diagram show how the world relative supply for good B and the world relative price ofgood B changes.ii. How does it affect the terms of trade of country F?iii. How does it affect the terms of trade of country H?iv. How does it affect the welfare of country F?v. How does it affect the welfare of country H?

Which of the following best completes the diagram above?ResponsesDependent on heavy industryDependent on heavy industryBordered by the PacificBordered by the PacificSlaveholding stateSlaveholding stateFormerly part of Mexico

3. Suppose the amount of capital in country F increases.i. Using a diagram show how the world relative supply for good B and the world relative price ofgood B changes.ii. How does it affect the terms of trade of country F?iii. How does it affect the terms of trade of country H?iv. How does it affect the welfare of country F?v. How does it affect the welfare of country H?