Suppose That Labor Is Mobile Between Countries a and B

question 82

Multiple Choice

Suppose that labor is mobile between countries A and B.If the relative demand for goods rises in country A,then labor can flow from ______________.It may be possible in this situation for countries A and B to __________________ which would help to___________________.

• A) country A to country B; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate.
• B) country B to country A; impose trade restrictions upon one another; increase employment in country A
• C) country B to country A; fix the exchange rate between the two countries (or have a common currency); eliminate the risks associated with having a flexible exchange rate
• D) country A to country B; adopt flexible exchange rates; reduce the risk of exchange rate fluctuations

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Definitions:

Scientifically Selected

Scientifically selected implies a choice or decision made based on systematic and empirical methods of investigation, often involving controlled experiments or statistical validation.

Independent Variable

A variable in an experiment or study that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

In research and experiments, the variable expected to change as a result of manipulations to the independent variable.

Marketing Experiments

The process of conducting tests or trials in marketing to evaluate the effectiveness of strategies, campaigns, or practices.