In the loanable funds framework, the ________ is measured on the vertical axis

Which of the following is true?

a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, lower prices on both the products c. After acquiring a complementary product, raise prices on both the products d. All of the above

The cheap foreign labor argument is a poor reason for restricting international trade because

a. the labor productivity of workers who are paid less is lower than the labor productivity of those who are paid more b. all firms and workers gain when there are no restrictions on international trade c. infant industries such as steel and automobiles need to be protected d. specialization and free trade usually raise the prices of all traded goods, so that the workers are paid more e. long run labor costs tend to be the same worldwide because of workers' mobility