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

question 96

Multiple Choice

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

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

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Definitions:

Unfair Competition

Business conduct that is deceptive, fraudulent, or violates trade practices.

Taxi Driver

A person who operates a vehicle, typically a car designated as a taxi, to transport passengers to their chosen destinations for a fee.

Swift Cab

A hypothetical or specific brand name potentially associated with a fast and efficient taxi service.

Sharia Law

A legal system governing members of the Islamic faith, derived from the Quran and the hadiths.