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Question 1: Goods that are difficult to substitute for each other will likely exhibit indifference curves thatA. are less bowed. C. are more bowed.B. cross less frequently. D. have a slope close to –1.Question 2: There’s an increasing gap in wages between unskilled and skilled workers in the United States. One hypothesis to explain the gap is that when the United States increased its participation in world markets, specialization and the pursuit of comparative advantageprecipitated aA. fall in domestic demand for unskilled labor.B. rise in domestic demand for unskilled labor.C. fall in domestic supply of unskilled labor.D. rise in domestic supply of unskilled labor.
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