1.If anti-sweatshop movements are successful in raising pay and improving working conditions for apparel workers in foreign countries, how will these changes abroad affect labor market outcomes for workers in the apparel and retailing industries in the United States? Assume foreign apparel workers and American apparel workers are complements.

a) increase demand b) decrease demand c) increase supply and decrease demand d) both a and b

2.Which of the following does not cause market failure?

a) ignorance b) externalities c) private goods d) price distortions