Assuming Labor Forces of Equal Size, the Production Possibilities Curves

question 130

Multiple Choice

Assuming labor forces of equal size, the production possibilities curves suggest that workers in West Mudville will have

• A) lower wages than workers in East Mudville before trade but equal wages after trade.
• B) higher wages than workers in East Mudville both before and after trade.
• C) lower wages than workers in East Mudville both before and after trade.
• D) higher wages than workers in East Mudville before trade but lower wages after trade.