The figure above shows the U.S. supply of labor curve. What was ...

[sjones]

The figure above shows the U.S. supply of labor curve. What was the affect of the decline in birth rates during the 1960s and 1970s on the supply of labor curve in the 1980s?
 
  A) a rightward shift of the supply of labor curve
  B) the supply of labor curve became steeper
  C) a movement downward along the supply of labor curve from a point such as A to a point such as B
  D) a leftward shift of the supply of labor curve
  E) None of the above answers is correct because there was no change in the supply of labor curve.

Question 2

How can national security possibly be threatened when a nation engages in free trade and specializes on the basis of comparative advantage?
 
  What will be an ideal response?

[asdfasdf]

Answer to Question 1

D

Answer to Question 2

Free trade is based on comparative advantage and specialization. A country specializes in the production of a good in which it has a comparative advantage. Hence, when a nation engages in free trade, resources that are required for strengthening the defense of a country are likely to be guided toward the production of goods that have an export potential. Moreover, specialization may cause a nation to import military weaponry if it does not have a comparative advantage in its production. If a crisis develops with the country from which such weapons are being imported, it is unlikely that they may continue to export. This hampers the ability of a country to preserve its integrity in times of war and thus acts as a threat to national security.

[sjones]

TYSM

[LVPMS]

Gracias!