American goods become more popular in Great Britain. British incomes rise, while U.S. incomes remain unchanged. The U.S. price level rises, while the British price level remains unchanged. The U.S. real interest rate rises, while the British real interest rate remains unchanged. 0 / 1 pts Question 9 Incorrect Incorrect If India has an absolute advantage in rug production when compared to England, then: India should export rugs to England.
5/8/2019 M15: Quiz: 00A-Spring 2019-Economics Fundamentals CAFE 6/6 England should export rugs to India. India uses fewer resources to produce rugs than England. England uses fewer resources to produce rugs than India. 1 / 1 pts Question 10 If nation A has a comparative advantage over nation B in the production of a product, this implies: it requires fewer resources in A to produce the good than in B. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. that nation B could not benefit by engaging in trade with A. that nation A could not benefit by engaging in trade with B. Quiz Score: 7 out of 10