THESE ARE BOTH MULTI SELECT

QUESTION 1. A person or nation that has a comparative advantage in the production of good X,

A. has lower productivity alternatives.

C. should increase their production of good X to consume more of it.

D. will only find willing trade partners if it has an absolute advantage.

E. should produce less of other goods.

F. will see gains from trade, if they trade with another person or nation 3 points

QUESTION 2 As the price of flour (an input into the cookie and cake production process) decreases,

A. demand for cookies will increase.

B. firms that produce cookies will increase the quantity of cookies supplied

C. the demand for complements to cookies will decrease

D. firms that produce cookies will increase the demand for other inputs.

E. equilibrium quantity of cookies may increase.