Which one of the following is a correct statement?

Unless two people have the same opportunity cost, one person will have a comparative advantage in one good, and the other person will have a comparative advantage in the other good.

Comparative productivity advantage means the advantage held by a country that produces more of a certain good per hour worked than another.

The degree of absolute advantage determines the degree of comparative advantage

Absolute advantage reflects the relative opportunity cost.

Which one of the following is not a correct statement?

An open economy interacts freely with other economies around the world

Imports include foreign-produced goods &services sold domestically.

Exports include domestically-produced goods & services sold abroad

Net exports (NX), aka the trade balance, equal the value of exports plus the value of imports.

Which one of the following is not a correct statement?

Net exports are used to measure the imbalance in a country's trade in goods and services.

Trade surplus means an excess of exports over imports.

The improvement in national welfare is known as the gains from trade.

Adam Smith argued that trade was a zero-sum game.

Which description does correctly characterize the net exports in NAFTA?

If prices of U.S. goods rise faster than prices of Mexican goods, exports to Mexico increase, imports from Mexico decrease, so U.S. net exports increase.

If Canada experiences a recession, U.S. net exports would increase due to a fall in Canadian consumers' purchases of U.S. exports.

If U.S. consumers decide to be patriotic and buy more products "Made in the U.S.A," U.S. net exports would rise due to a fall in imports.

If prices of Mexican goods rise faster than prices of U.S. goods, this makes U.S. goods less attractive relative to Mexico's goods.