Assume, for China, That the Domestic Price of Oranges Without

question 35

Multiple Choice

Assume, for China, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production of oranges,

• A)China has a comparative advantage over other countries and China will import oranges.
• B)China has a comparative advantage over other countries and China will export oranges.
• C)other countries have a comparative advantage over China and China will import oranges.
• D)other countries have a comparative advantage over China and China will export oranges.

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Definitions:

Unemployment

A situation where an individual who is capable of working and is actively seeking work is unable to find employment.

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as a profit from financial investments.

Wages

Payment usually received by an employee on a regular basis for services rendered to an employer, often quantified as an hourly, daily, or piecework amount.

Salaries

Regular payments made to employees for their labor, typically based on a fixed annual amount and paid in monthly or biweekly installments.