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Westland and Oceania Have Just Started to Trade with Each

Question 202

Multiple Choice

Westland and Oceania have just started to trade with each other. Westland exports goods produced with skilled labor and imports goods made with unskilled labor from Oceania. Over time, we would expect that in Oceania the wages of unskilled workers will


A) rise, and the wages of skilled labor will fall.
B) fall, and the wages of skilled labor will rise.
C) rise, and the wages of skilled labor will rise.
D) fall, and the wages of skilled labor will fall.

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