The slope of the labor-leisure budget constraint represents the tradeoff between leisure and income

Productive efficiency is achieved when firms produce goods and services

A) at the highest profit margin. B) at the lowest cost. C) most desired by society. D) of the highest quality.

Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, which causes domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, the demand for labor in the shoe industry ________ and the demand for labor in the computer industry ________.

A. increases; increases B. decreases; decreases C. increases; decreases D. decreases; increases