What happens to consumption as disposable income increases?

1)consumption decreases and saving increases

2)consumption and saving both increase

3)consumption and saving both decrease.

4)consumption increases and saving decreases

2.Tariffs are needed to protect workers from competition from countries with cheap labour. Is this statement correct?

1)It is not entirely correct because there is an inverse relationship between wage rates and productivity

2)It is not entirely correct because comparative advantage makes trade mutually beneficial.

3)It is correct because trade lowers local labour productivity and overall living standards.

4)It is correct because trade is based on absolute advantage, not comparative advantage.