1,If a country has a comparative advantage in producing rice and a comparative disadvantage in producing pencils, the Ricardian model predicts that the real wage in terms of rice will ____________and the real wage in pencil production will ____________as a result of international trade.

Select one:

a.fall; rise

b.rise; fall

c.stay the same; fall

d.stay the same; rise

2.

Kim Yen Marks Consider the information in the table below. Category Billions of dollars Consumption (personal consumption expenditure) 620 Investment (gross private domestic investment) 300 Government consumption (government expenditure) 240 Exports 160 Imports 45 Foreign income payments to domestic factors 78 Domestic income payments to foreign factors 18 Net unilateral transfers 100 How many billion dollars does the current account of this economy amounts to? Answer:Consider the information in the table below. Marks Category Billions of dollars Consumption (personal consumption expenditure) 620 Investment (gross private domestic investment) 300 Government consumption (government expenditure) 240 Exports 160 M Foreign income payments to domestic factors 78 Domestic income payments to foreign factors 18 Net unilateral transfers 100 Are this economy's savings greater or smaller than its investment? Select one: Q a. greater 0 b. smaller 0 c. the same size 0 d. Not enough information is provided to answer the