If Labor in Mexico Is Less Productive Than Labor in the United

question 96

Multiple Choice

If labor in Mexico is less productive than labor in the United States in all areas of production,

• A)then neither nation can benefit from trade.
• B)then Mexico can benefit from trade but the United States cannot.
• C)then the United States will have a comparative advantage relative to Mexico in the production of all goods.
• D)then both Mexico and the United States still can benefit from trade.

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Definitions:

Cattle Feed

Food specifically prepared and provided for the nourishment and growth of cattle.

Poisoned Feed

A harmful or toxic compound mixed with livestock feed that can damage or kill animals.

Strict Liability

Legal responsibility for damages or injury, regardless of the presence of fault or negligence.

Sailboards

Lightweight boards equipped with sails, used for the sport of windsurfing.