Economists believe that production possibilities frontiers rarely have a bowed shape

Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen

A) is incorrect. Free trade raises living standards by increasing economic efficiency. B) is advancing the anti-dumping argument for protectionism. C) is correct in arguing that the high wages of U.S. workers make it impossible to compete with workers in low-wage countries. D) is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living.

New residential housing is counted in GDP as a(n)

a. durable consumption good b. household durable good c. investment good d. inventory expansion e. long-term durable good