Suppose the nation of canada forbids international trade. in canada, you can obtain a hockey stick by trading 5 baseball bats. in other countries, you can obtain a hockey stick by trading 8 baseball bats. these facts indicate that:
1. if canada were to allow trade, it would export hockey sticks.
2. canada has an absolute advantage, relative to other countries, in producing hockey sticks
3. canada has a comparative advantage, relative to other countries, in producing baseball bats.
4. all of the above are correct.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Ithink its 3! hope it : -)