Multiple Choice
SCENARIO: CHILE AND THE UNITED STATES
Chile and the United States use capital and labor to
Produce wheat and automobiles.The United States is
Capital abundant, and Chile is labor abundant.Wheat
Production is more labor intensive than automobile
Production.
Reference: Ref 48
(Scenario: Chile and the United States) What is the
MOSTimportant reason why U.S.workers might oppose
u.S.Chile free trade?
A) Returns to capital in the United States are expected to rise as a result of U.S.Chile free trade.
B) Wages in the United States are expected to rise as a result of U.S.Chile free trade.
C) Returns to capital in Chile are expected to rise as a result of U.S.Chile free trade.
D) Wages in the United States are expected to fall as a result of U.S.Chile free trade.
Correct Answer:
Verified
Correct Answer:
Verified
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