If One Country's Wage Level Is Very High Relative to the Other's

question 22

Multiple Choice

If one country's wage level is very high relative to the other's (the relative wage exceeding the relative productivity ratios) then it is probable that

• A) free trade will not improve either both countries welfare.
• B) free trade will result in no trade taking place.
• C) free trade will result in each country exporting the good in which it enjoys comparative advantage.
• D) free trade will result in each country exporting the good in which it suffers the greatest comparative disadvantage.
• E) free trade will not affect the economic welfare of either country.

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Definitions:

Personality Disorders

Mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating markedly from those accepted by the individual's culture.

PTSD

Post-Traumatic Stress Disorder is a mental health condition triggered by a terrifying event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

Cognitive-Behavioural Model

A psychological framework that emphasizes the role of thought processes and behaviours in the development and treatment of disorders.

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.