Initially, Workers in the Shoe Industry and the Computer Industry

question 88

Multiple Choice

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, the demand for labor in the shoe industry ______ and the demand for labor in the computer industry ______.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Contaminated Rail

This refers to railway tracks that have been exposed to pollutants or hazardous substances, potentially posing risks to the environment and health.

Urban Residents

Individuals who live within the confines of a city or densely populated area.

Urban Areas

Areas known for their significant concentration of people and extensive anthropogenic characteristics relative to nearby regions.

Urban Sprawl

The unchecked spread of city regions into adjacent rural lands, frequently identified by sparse residential growth.