Answer Questions on the Basis of the Following Diagram

question 32

Multiple Choice

Answer questions on the basis of the following diagram. Assume all migration is costless.




-If wages are initially $10 in country X and $25 in country Y,then we should expect a relative price advantage in country:

• A)X,eventually resulting in greater export sales to Y and thus greater derived demand for labor in X
• B)Y,eventually resulting in greater export sales to X and thus greater derived demand for labor in Y
• C)X,eventually resulting in greater imports from Y thus greater derived demand for labor in X
• D)Y,eventually resulting in greater imports from X and thus greater derived demand for labor in Y

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Definitions:

Pyrotechnics

The art, craft, or science of making and using fireworks or related explosive devices for entertainment, military, or industrial purposes.

Fourth of July

A U.S. holiday commemorating the Declaration of Independence of the United States, on July 4, 1776.

Pyrotechnics

The art and science of making fireworks, including the design and manufacture of devices that produce light, sound, and smoke for entertainment purposes.

Trumpet

A brass musical instrument with a flared bell and bright, penetrating tone, played by blowing into a mouthpiece.