Low Wages and Poor Working Conditions in Many U

question 20

Multiple Choice

Low wages and poor working conditions in many U.S. trade partners

• A) prove that the gains-from-trade arguments of the Ricardian model are false.
• B) may be a fact of life, but economists don't care.
• C) are facts emphasized by U.S. labor in its contract negotiations.
• D) prove that the gains-from-trade arguments of the Ricardian model are true.
• E) prove that international trade is exploitative.

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Definitions:

Cable Television

A system of delivering television programming to paying subscribers via radio frequency signals transmitted through coaxial cables or digital light pulses through fiber-optic cables.

Per Capita Income

A measure of the average income earned per person in a certain area, such as a country or city, calculated by dividing the area's total income by its population.

World Price

The international market price at which goods are traded between countries.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.