Refer to Figure 14.1. Other things equal, an increase in the inflation rate is best represented as a movement from

According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to

a. widen or aggravate the income disparity between skilled and unskilled workers. b. reduce the income disparity between skilled and unskilled workers. c. lower the wages of both groups of workers. d. raise the wages of both groups of workers.

The ability of a monopoly to charge a price that exceeds marginal cost depends on the

A) price elasticity of supply. B) price elasticity of demand. C) slope of the demand curve. D) shape of the marginal cost curve.