The decision that households make to save is independent of the decisions businesses make to invest

Which of the following is not a potential source of comparative advantage for China in the manufacturing sector?

A) Abundant low wage, low skill workers B) A large domestic market that can lead to scale economies C) Coastal areas with good logistics for international trade D) Abundant credit from China's government sector to set up manufacturing operations

At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain

What will be an ideal response?