Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will
a. lower the standard of living in both countries.
b. raise the standard of living in both countries.
c. make some workers less efficient.
d. lead to an inappropriate allocation of resources.
b
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Wages are comparatively low in markets where demand for labor is low and supply is high
a. True b. False Indicate whether the statement is true or false
A nominal, bilateral exchange rate is:
a. The weighted-average value of a currency relative to many foreign currencies. b. The nominal, effective exchange rate adjusted for a nation's price level relative to many foreign countries' prices. c. The same as the nominal, effective exchange rate. d. The value of one currency in terms of another currency.
Every social system confronts scarcity and therefore must
A. produce only free goods. B. try to produce outside its production possibilities frontiers. C. economize. D. allocate goods by government edict.
Saving equals
A. consumption spending minus savings. B. disposable income minus savings. C. disposable income minus consumption spending. D. disposable income minus taxes.