How would a strong U. S. dollar impact the trade of grain produced in the United States?
U. S. grain exports decrease
U. S. grain exports increase
U. S. grain imports decrease
U. S. grain imports stagnate
Two countries produce milk and dairy products efficiently. Neither has an absolute advantage. However, Country A exports milk to Country B, and Country A imports cotton from Country B. Which of the following is inferred?
The opportunity cost of producing milk is lower for Country A.
The opportunity cost of producing cotton is higher for Country B.
Country A has a natural resource advantage in cotton.
Country B has a natural resource advantage in milk.
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