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:

Proposals

Documents offering a plan or suggestion, typically detailing methods, timelines, and costs for executing a project or initiative.

Demands

The firm requests or assertions of entitlement for services, goods, or rights.

Persuasive Messages

Communications aimed at influencing the attitudes, beliefs, or behaviors of others through logical argument, emotional appeal, or credibility.

Analytical Reports

Documents that evaluate information or data to make conclusions or recommendations.