If Labor in Mexico Is Less Productive Than Labor in the United

question 105

Multiple Choice

If labor in Mexico is less productive than labor in the United States in all areas of production,

• A)neither nation can benefit from trade.
• B)Mexico can benefit from trade but the United States cannot.
• C)the United States will have a comparative advantage relative to Mexico in the production of all goods.
• D)both Mexico and the United States still can benefit from trade.

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Definitions:

Engineering Problem

A challenge or issue within the field of engineering that requires a solution, often involving mathematical, scientific, and practical knowledge.

Belief Perseverance

Clinging to one’s initial conceptions after the basis on which they were formed has been discredited.

Intuition

An effortless, immediate, automatic feeling or thought, as contrasted with explicit, conscious reasoning.

Gut-Level

A colloquial term describing a reaction or feeling that is instinctual or based on deep-seated intuition rather than rational analysis.