Money's ability to store value depends on how fast prices in the economy are increasing

Labor unions create a rent when they succeed. This rent forces employers or management to return some of their profits to unionized workers in the form of improved working conditions, health benefits or increased wages

Indicate whether the statement is true or false

Saudi Arabia produces oil more cheaply than Iran but the opportunity cost of producing oil in Saudi Arabia is higher than in Iran. Saudi Arabia produces figs more cheaply than Iran but the opportunity cost of producing figs in Saudi Arabia is lower than in Iran. Should they trade? Who should produce what? a. No, Saudi Arabia is more efficient in both oil and figs and will lose by trading. b

Yes, because Saudi Arabia has an absolute advantage in figs, it should produce figs and Iran should produce oil. c. Yes, because Saudi Arabia has a comparative advantage in oil, it should produce oil and Iran produce figs. d. Yes, because Iran has a comparative advantage in oil, it should produce oil and Saudi Arabia produce figs. e. No, because the terms of trade would be negative for Iran.