Which of the Following Statements Is True About International Trade

question 185

Multiple Choice

Which of the following statements is true about international trade?

• A) In the long-run, trade not only reduces employment in some sectors but also reduces employment in the economy as a whole.
• B) In the short-run, trade can reduce employment in some sectors and also in the economy as a whole.
• C) Owners of factors of production used in industries in which a nation lacks a comparative advantage are more likely to gain from trade than those owners of resources used in industries in which a country has a comparative advantage.
• D) Countries with relatively higher wage rates are more likely to be hurt by international trade.

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Definitions:

Labor Supply

The cumulative amount of time employees are prepared and capable of working for a specific rate of pay.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Women's Wages

The average compensation or income earned by women for their labor or services, often discussed in the context of gender pay gap issues.

Men's Wages

The earnings received by men for their labor or services, often analyzed in comparison to women's wages for discussions on gender wage gaps.