Multiple Choice
If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for
A) both skilled and unskilled labor will rise proportionately.
B) skilled labor will fall and the demand for unskilled labor will rise.
C) skilled labor will rise and the demand for unskilled labor will fall.
D) both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.
Correct Answer:

Verified
Correct Answer:
Verified
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