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Suppose There Are Two Countries (Home and Foreign) That Produce

Question 115

Multiple Choice

Suppose there are two countries (Home and Foreign) that produce two
Goods.Home's wages are 100% greater than Foreign's wages.Will trade
Be possible between Home and Foreign?


A) No, because Foreign's wages are lower than Home's wages.
B) Yes, Foreign will be able to export both products to Home.
C) Yes, as long as Home's marginal productivity of labor in one product is at least 100% higher than Foreign's marginal productivity of labor in
The same product.
D) No, because prices will be the same in each country.

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