Which of the Following Is TRUE Regarding Trade and Wages

question 10

Multiple Choice

Which of the following is TRUE regarding trade and wages?

• A) Trade can increase wages by increasing the productivity of labor.
• B) Trade helps to equalize wages between high- and low-productivity countries.
• C) Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not.
• D) Trade directly increases productivity, which in turn increases wages.

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Definitions:

Accounting Advice

Professional recommendations or guidance concerning the financial management, practices, and recording of a business or individual's affairs.

Rate of Return

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Cram-Down Round

A financing round typically at a lower valuation, in which existing shareholders have their shares diluted if they do not participate.

Founders' Ownership

The proportion of a company's equity that is owned by its original creators or founders.