Westland and Oceania Have Just Started to Trade with Each

question 202

Multiple Choice

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

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

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Definitions:

Moving Average

A calculation to analyze data points by creating averages of different subsets of the complete data set.

Cyclical Movement

Fluctuations in business activity experienced over time, usually tied to economic cycles.

Random Variation

The unpredictable changes in data that do not follow a recognizable pattern, often due to random effects or causes.

Moving Averages

A method used in time series analysis to smooth out short-term fluctuations and highlight long-term trends by averaging data points over specific periods.