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Cost-benefit analysis of international trade O A. focuses attention on conflicts of interests between countries. O B. is empirically intractable. O C. focuses attention on

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Cost-benefit analysis of international trade O A. focuses attention on conflicts of interests between countries. O B. is empirically intractable. O C. focuses attention on conflicts of interest within countries. O D. is basically useless.The figure to the right displays a scatterplot of hypothetical data for the US and the EU. More specifically, it compares the ratio of US to EU exports with the ratio Ratio of US/EU exports of US to EU labor productivity for 24 industries. 4 (The productivity ratio is measured on the horizontal axis, the export ratio on the vertical axis. And, both axes are given a logarithmic scale.) Which of the following statements does the graph most accurately support? O A. The relationship between a country's exports and its relative productivity is tenuous. O B. Countries will tend to export those goods in which their absolute .5- productivity is high. O C. A country's relative productivity will rise when its export ratio rises. . . . 25- O D. Countries will tend to export those goods in which their relative productivity is high. O- 0.5 1 2 4 8 Ratio of US/EU productivity

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