If Hong Kong and Taiwan Had Identical Labor Costs but Were

question 25

Multiple Choice

If Hong Kong and Taiwan had identical labor costs but were subject to increasing costs of production:

• A) Trade would depend on differences in demand conditions
• B) Trade would depend on economies of large-scale production
• C) Trade would depend on the use of different currencies
• D) There would be no basis for gainful trade

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The faculty of reasoning and understanding objectively, especially with regard to abstract or academic matters.