According to the Theory of Trade, If Two Countries Trade

question 22

Multiple Choice

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

• A)consumption in one country will fall and wages 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 the 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:

Printed Representation

The physical manifestation of visual information on a surface, such as paper or fabric, usually through methods like printing or painting.

Dot Matrix Paper

Paper designed for use in dot matrix printers, characterized by its removable side margins with sprocket holes.

Artifacts

Something extraneous to what is being looked for; activity that causes interference on ECGs.

Interference

Confusion of desired signals caused by undesired signals, as in artifacts on an ECG.