If a Nation Has "Cheap Labor

question 34

Multiple Choice

If a nation has "cheap labor,"

• A)it can still benefit from trade.
• B)other nations can still compete with it.
• C)it cannot have a comparative advantage in everything.
• D)All of the above are true.

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Definitions:

Operating Costs

Expenses associated with the day-to-day functioning of a business, excluding financing costs and taxes.

Income Tax Rate

The income tax rate is the percentage at which individual or corporate income is taxed by the government.

Stockholder Wealth

The total value of a shareholder’s equity in a company, representing the shareholder's ownership interest.

Common Share

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.