Which of the Following Is TRUE Regarding Trade and Wages

question 10

Multiple Choice

Which of the following is TRUE regarding trade and wages?

• A) Trade can increase wages by increasing the productivity of labor.
• B) Trade helps to equalize wages between high- and low-productivity countries.
• C) Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not.
• D) Trade directly increases productivity, which in turn increases wages.

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Definitions:

Deviance

Behaviors or actions that deviate from societal norms or expectations.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Capitalist System

An economic and social system in which trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Deviant Behavior

Actions or conduct that deviate from societal norms and expectations, often eliciting negative sanctions.