Assume the Standard Trade Model with Two Countries (Alpha and Beta)

question 2

Multiple Choice

Assume the standard trade model with two countries (Alpha and Beta) , two goods (food and drink) , and two factors of production (land and labor) . Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. Which of the following is most likely to happen in the long run following the opening of free trade between the countries?

• A)The workers in Alpha will be better off but the land owners will be worse off.
• B)The workers in Beta will be better off while the land owners will be worse off.
• C)The workers and land owners in the food industry in Beta will be better off while the workers and landowners in the drink industry will be worse off.
• D)The workers and land owners in the food industry in Alpha will be better off while the workers and landowners in the drink industry will be worse off.

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Definitions:

Benevolence

The quality of being well-meaning and kindly, often characterized by acts of generosity and compassion towards others.

Autonomous Morality

The stage of moral development in which individuals recognize that moral rules are created by people and that individuals can question or challenge societal norms based on personal principles of justice or fairness.

Heteronomous Morality

Refers to the stage of moral development in children where rules are perceived as fixed and unchangeable, often enforced by authority figures.

Preconventional Moral Reasoning

The first level of Kohlberg's stages of moral development, where individuals' moral reasoning is based on personal interests and the consequences of their actions.