People will be likely to spend a smaller percentage of any additional income when _____
Fill in the blank(s) with the appropriate word(s).
they believe that the increase is temporary.
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Which is not a cause of the deterioration of the strength of labor?
a. the rise of the service sector b. regional shifts in manufacturing c. foreign industrial competition d. a high rate of immigration of unskilled workers who tend to fear taking part in union activities. e. All of the above are correct.
Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then
a. the two countries' combined output of both goods will be higher than it would be in the absence of trade. b. Greece will produce more fish than it would produce in the absence of trade. c. Germany will produce more cars than it would produce in the absence of trade. d. All of the above are correct.