3. Importing and exporting of goods and services can lead to increases in specialization and knowledge that can: a. decrease GDP per capita. b. shift the production function downwards. c. increase total factor productivity. d. decrease total factor productivity. 4. Which of the following factors do not tend to cause a change in the demand for foreign exchange? a. changes in domestic income b. changes in domestic prices c. changes in foreign prices d. changes in the exchange rate 5. The treaty in the late 19505 calling for establishment of a European common market known as the EEC was: a. the Treaty of Paris. b. the Treaty of Rome. c. the Treaty of Brussels. d. the Treaty on European Union