Suppose Country a Has a High Average Wage Level and a High

question 82

Multiple Choice

Suppose Country A has a high average wage level and a high level of output per person,while Country B has a low average wage level and a low level of output per person.Which country can benefit from trade?

• A)Only Country A can benefit.
• B)Only Country B can benefit.
• C)Both Country A and Country B can benefit.
• D)Neither Country A nor Country B can benefit.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually derived from the company’s profits.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with dividends that are paid out before those of common shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company’s profits through dividends.

Dividend

a distribution of a portion of a company's earnings to its shareholders, usually in cash or additional shares.