Hapland and Genoshia Have Just Started to Trade with Each

question 77

Multiple Choice

Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will

• A) rise, and the wages of unskilled labor in Hapland will fall.
• B) fall, and the wages of unskilled labor in Hapland will rise.
• C) rise, and the wages of unskilled labor in Hapland will rise.
• D) fall, and the wages of unskilled labor in Hapland will fall.

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Definitions:

Partnership Contract

A legally binding agreement between partners that outlines the terms of their business relationship.

Principal Characteristic

The most significant or defining feature of an object, concept, or entity.

Limited Liability

A legal structure that protects a company's owners or shareholders from being personally liable for the company’s debts or liabilities.

Limited Life

A term indicating that an entity or asset has a finite period of usefulness or existence.