Suppose There Are Two Countries (Home and Foreign) That Produce

question 95

Multiple Choice

Suppose there are two countries (Home and Foreign) that produce two goods. Home's wages are 100% greater than Foreign's wages. Will trade be possible between Home and Foreign?

• A) No, because Foreign's wages are lower than Home's wages.
• B) Yes, Foreign will be able to export both products to Home.
• C) Yes, as long as Home's marginal productivity of labor in one product is at least 100% higher than Foreign's marginal productivity of labor in the same product.
• D) No, because prices will be the same in each country.

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Definitions:

Enol

A chemical species characterized by a carbon-carbon double bond adjacent to an alcohol group, often in equilibrium with its keto form.

Equilibrium

A state in which the rates of the forward and reverse reactions are equal, leading to no net change in the concentration of reactants and products over time.

Iodoform Test

A chemical test for the presence of methyl ketones or secondary alcohols that can be oxidized to methyl ketones, indicated by the formation of a yellow precipitate.

4-heptanone

A seven-carbon ketone with the ketone group positioned on the fourth carbon of the chain, often used as a solvent or in organic synthesis.