5) Taxes on labor tend to encourage the elderly to retire early. (5pts) True False

6) An important factor in the decline of the U.S. textile industry over the past 100 or so years is foreign competitors that can produce quality textile goods at low cost. lower prices of goods that are substitutes for clothing. a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.

7) When a country allows trade and becomes an exporter of a good, (5pts) domestic producers gain and domestic consumers lose. domestic producers lose and domestic consumers gain. domestic producers and domestic consumers both gain. domestic producers and domestic consumers both lose.