If There Are Large Disparities in Wage Levels Between Countries

question 8

Multiple Choice

If there are large disparities in wage levels between countries, then

• A) trade is likely to be harmful to both countries.
• B) trade is likely to be harmful to the country with the high wages.
• C) trade is likely to be harmful to the country with the low wages.
• D) trade is likely to be harmful to neither country.
• E) trade is likely to have no effect on either country.

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Definitions:

Smaller Group

A subset of a larger population or collection, typically characterized by fewer members or lesser size.

Parity Ratio

A metric often used in agriculture and economics to compare the relative value of one commodity or currency to another, based on a standard or base period.

Farmers

Individuals or entities engaged in the activity of agriculture, aiming at producing food and other crops.

Agricultural Subsidies

Government financial assistance to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.