What is a consequence of following the comparative advantage principle? a. countries only make one kind of good or service. b. wages scale to exactly match the skill of the wage-earners. c. countries become more interdependent on one another for goods and materials. d. goods are traded directly, rather than using monetary trade.

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%