There is an inverse relationship between the price-cost margin and the level of competition in a particular industry

Differences in the productivity of labor account for comparative advantage if:

a. the minimum wage varies across the countries. b. the size of the domestic market varies across the countries. c. different countries have differences in labor hours required to produce each good. d. the strength of workforce varies across countries. e. the laborers are paid different wages in different countries.

Katie wins $3 million in her state's lottery. If Katie drastically reduces the number of hours she works after she wins the money, we can infer that the income effect is larger than the substitution effect for her

a. True b. False Indicate whether the statement is true or false