If Wages in Mexico Are Lower Than Those in Canada

question 25

Multiple Choice

If wages in Mexico are lower than those in Canada,

• A)Canadian living standards can be raised by imposing tariffs on imports from Mexico.
• B)Canadian consumers can benefit by purchasing some low-cost goods from Mexico.
• C)Canada may have a comparative advantage in all products.
• D)Mexico may have a comparative advantage in all products.
• E)Mexico probably has an absolute advantage in all products due to its low labour costs.

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Definitions:

Stable System

A system that remains constant over time or is capable of returning to its equilibrium state after any disturbances.

Symbolic Interactionism

A sociological perspective that focuses on how individuals interpret and give meaning to social interactions and symbols.

Social Situations

Circumstances that involve interactions between individuals in a societal setting.

Behaviors

Actions or reactions of an individual or group in response to external or internal stimuli, which can be observed and measured objectively.