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Initially, Workers in the Shoe Industry and the Computer Industry

question 74

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Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ________ and wages in the computer industry ________.


Definitions:

Malleus

A small bone in the middle ear that plays a crucial role in the transmission of sound vibrations to the inner ear.

Cerumen

A scientific term for earwax, a substance produced in the ear canal that protects the ears by trapping dirt and slowing the growth of bacteria.

Organ of Corti

A structure located in the cochlea of the inner ear, responsible for converting sound vibration into nerve impulses.

Basilar Membrane

A key structure in the cochlea of the inner ear, crucial for the perception of sound as it vibrates in response to sound waves.

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