Benefits from international trade are based on the following differences, except:

A contractionary monetary policy is likely to lead to ________

A) lower real interest rates B) lower real wages C) a lower demand for labor D) a lower supply of labor

In a perfectly competitive market, the market price is $23. At the current level of output, a firm has a marginal cost of $28. What should the firm do?

A) produce a larger output to make more profit B) nothing, it is currently maximizing profit C) produce less output to make more profit D) shut down E) raise the price of its product