According to the Theory of Trade, If Two Countries Trade

question 106

Multiple Choice

According to the theory of trade, if two countries trade with each other:

• A) consumption in one country will fall and wages in that country will also fall.
• B) wage costs will remain low if both countries specialize in producing the goods for which they have a comparative advantage.
• C) trade raises labor productivity and wages of both countries.
• D) wages in the country with a comparative advantage will rise and wages in the country without a comparative advantage will fall.

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Definitions:

Erikson

Erik Erikson was a developmental psychologist known for his theory on the psychosocial development of human beings, which postulates that individuals go through eight stages from infancy to adulthood, each accompanied by a specific psychological challenge.

Idealistic Standards

Expectations or goals that are highly ambitious and often unrealistically perfect or optimistic.

Parents' Values

Beliefs and principles that parents consider important and attempt to instill in their children.

Role Confusion

A state of uncertainty or conflict about one's role in society, often occurring during adolescence as part of identity development.