According to the Theory of Comparative Advantage, the Reason Wages

question 224

Multiple Choice

According to the theory of comparative advantage, the reason wages are lower in China than in the United States is:

• A) the higher cost of living in the United States.
• B) lower productivity in China.
• C) the lower opportunity cost to work in China.
• D) more trade restrictions in the United States.

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Definitions:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in relatively bright light.

Visual Information

Visual information encompasses details that are perceived through the sense of sight, including colors, shapes, motion, and spatial relationships, which are processed by the visual cortex.

Wavelengths

The distance between successive peaks of a wave, especially points in a sound wave or electromagnetic wave.

Trichromatic Theory

The idea that three types of cone receptor cells in the retina are responsible for color perception. Each type responds optimally to different, but overlapping, ranges of wavelengths.