In the figure above in the market for high-skilled labor, the equilibrium wage rate is

One reason why firms replace markets for some activities is that firms

A) reduce the number of transactions required. B) enable individuals to avoid a large portion of their taxes. C) reduce the rate at which the product is wasted. D) do not require team production.

If the case study on U.S. / China trade is correct in its analysis of factor abundance,

A) Chinese capital owners should see their income rise as trade increases. B) U.S. skilled labor inputs should see their incomes fall as trade increases. C) U.S. capital owners should see their income fall as trade increases. D) Chinese unskilled labor should see their income rise as trade increases.