Use the Following Scenario to Answer the Questions That Follow

question 134

Multiple Choice

Use the following scenario to answer the questions that follow.
Suppose that Canada, an industrialized nation, and Mexico, a developing nation, both produce clothes and cars. The real wage in Mexico is lower than in Canada. The countries have a free-trade agreement. Each nation will find a comparative advantage.
-Which country's consumers will benefit from the free-trade agreement?

• A) neither
• B) Canada
• C) both
• D) Mexico
• E) not enough information to determine

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Definitions:

Palazzo Pubblico

Italian, “public palace.” City hall.

Frescoes

A technique of mural painting executed upon freshly laid, or wet lime plaster, allowing the paint to become an integral part of the wall.

Civic Life

The activities and practices that involve participation in the governance and community-related actions within a society, emphasizing the role of citizens.

Pietro Lorenzetti

An Italian painter of the Sienese school during the early Renaissance, known for his detailed and emotive religious scenes.