With Constant Labor Costs (L), the Two Countries, X and Y

question 36

Multiple Choice

With constant labor costs (L) , the two countries, X and Y produce units of A and B as shown below.It is clear that with free trade, money wage rates in X will be:

• A)3 times those in Y.
• B)more than 3 times those in Y.
• C)between 2 and 3 times those in Y.
• D)less than twice those in Y but how much less is unknown.
• E)one-fourth those in Y.

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Definitions:

Ambivalent Racism

A form of racism characterized by holding conflicting positive and negative attitudes towards a racial group.

Institutional Discrimination

Unfair and unequal treatment of individuals based on their membership in a certain group, perpetuated by the policies and practices of social and political institutions.

Symbolic Racism

A form of racism expressed subtly in the guise of fairness and opposition to policies that could promote equality.

Kernel of Truth Hypothesis

The notion that stereotypes, while significantly exaggerated, may originate from some element of actual experience or reality.