Consolidation in an industry can be a good thing if larger firms are more efficient at producing products at a lower price.

The gains from immigration of labor or capital to the recipient nation can be summarized as:

a. the total cost of acquiring new resources versus the cost of using domestic resources. b. the increase in prices minus the increase in the unemployment rate. c. the gain in domestic real GDP minus costs from immigration. d. the impact on the ability of labor unions to attract new members and the ability of domestic firms to retain profits.

In which of the following situations would you prefer to be the borrower?

A) The interest rate is 9 percent and the expected inflation rate is 7 percent. B) The interest rate is 4 percent and the expected inflation rate is 1 percent. C) The interest rate is 13 percent and the expected inflation rate is 15 percent. D) The interest rate is 25 percent and the expected inflation rate is 50 percent.