When a Rich Country That Has Absolute Advantages in All

question 75

Multiple Choice

When a rich country that has absolute advantages in all products begins trading with a poor country:

• A) the wage in the rich country will go down and the wage in the poor country will go up.
• B) the wages in both countries will go up.
• C) the wages in both countries will go down.
• D) the wage in the rich country will go up and the wage in the poor country will go down.

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Definitions:

Construct

An abstract concept that is specifically chosen or created to explain a given phenomenon.

True-Experimental Design

True-experimental design is a type of experimental research methodology that involves the manipulation of variables, control of extraneous variables through random assignment, and the comparison between a control group and one or more experimental groups to determine causal relationships.

Cause and Effect

A relationship between two events where one event (the cause) directly results in the other event (the effect).

Applied Research

Research aimed at solving practical problems rather than acquiring knowledge for knowledge's sake.