Labor market compensation contracts can be designed to screen out poor quality workers as well as provide employees with incentives to work hard.

When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means

A) the demand for milk is income elastic. B) milk is a necessity. C) milk is a luxury. D) milk is an inferior good.

Export-led growth tends to

A) discourage competition in the global economy. B) exploit domestic comparative advantages. C) lead to unemployment among domestic workers. D) help firms benefit from diseconomies of large-scale production. E) lower the overall volume of imports.