When a rich nation buys a product made in a poor nation, in the poor nation the demand for labor ________ and the wage rate ________.
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
Question 2
The above figure illustrates the marginal social benefit and marginal social cost for chicken sandwiches. If the quantity is decreased from 6 to 3 and the price increases from 3 to 4, consumer surplus will decrease by
A) 1.50.
B) 2.00.
C) 3.00.
D) 4.50.