International Trade Is

question 22

Multiple Choice

International trade is

• A)a "zero-sum" game in which one country benefits at the expense of another country.
• B)an "increasing-sum" game at which all players become winners.
• C)none of the above

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Definitions:

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity, reduce turnover, or improve the quality of applicants.

Labor Surplus

A situation in the labor market where the supply of labor exceeds the demand for labor, often leading to unemployment.

Structural Unemployment

An unemployment scenario where there's an incongruence between the skillsets provided by the labor market and those needed by employers.

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity by attracting better applicants, reducing turnover, or increasing worker effort.