A lower interest elasticity of investment demand leads to a

Which of the following statements about competition in a market is true?

A) Competition forces firms to outsource the production of their labor-intensive products. B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. D) Competition forces firms to add only low profit margins to their costs of production.

All of the following describe trends in the labor markets of the industrialized world EXCEPT:

A. growing wage inequality. B. substantial growth in real wages over the twentieth centaury C. low rates of unemployment in Western Europe. D. a slowdown in real wage growth since the 1970s.