Advanced Placement (AP), 29.01.2021 06:20 nataliahenderso
According to the theory of trade, if two countries trade with each other:
a.) wage costs will remain low if both countries specialize in producing the goods for which they have a comparative advantage
b.) consumption in one country will fall and wages in that country will also fall
c.) trade raises labor productivity and wages of both countries
d.) wages in the country with a comparative advantage will rise and wages in the country without a comparative advantage will fall.
Answers: 2
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According to the theory of trade, if two countries trade with each other:
a.) wage costs will remai...
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