1. The fundamental force that drives international trade is

a. absolute advantage.

b. importation duties and tariffs.

c. export licenses.

d. comparative advantage.

e. B and C are correct.

2. Tyler Fashion Store sells 7 pairs of jeans per day when it charges $100 per pair. It sells pairs of jeans per day at a price of $90 per pair. The marginal revenue of the 8th pair of jeans is

a. $20

b. $90

c. $100

d. $700