If Country a Has Wages That Are Substantially Less Than

question 47

Multiple Choice

If country A has wages that are substantially less than those in country B,

• A)country B will benefit by placing tariffs on imports from country A.
• B)country A will not have to subsidize its export industries.
• C)country A will have an absolute advantage over country B.
• D)the pattern of comparative advantage will depend also on the relative productivities of labour in the two countries.
• E)country B will import from A but will not be able to export to country A.

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Definitions:

Available Credit

The difference between the maximum amount allowed and the actual amount owed on a credit card.

Credit Line

The maximum amount that a person can owe on a credit card at one time.

Layaway Plan

A purchasing agreement that allows a buyer to pay for goods in installments and receive the goods upon full payment.

APR

APR, or Annual Percentage Rate, represents the yearly interest rate charged on borrowed money, encompassing both the nominal rate and additional costs associated with the loan.