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With Constant Labor Costs (L), the Two Countries, X and Y

Question 36

Multiple Choice

With constant labor costs (L) , the two countries, X and Y produce units of A and B as shown below.It is clear that with free trade, money wage rates in X will be: With constant labor costs (L) , the two countries, X and Y produce units of A and B as shown below.It is clear that with free trade, money wage rates in X will be:   A) 3 times those in Y. B) more than 3 times those in Y. C) between 2 and 3 times those in Y. D) less than twice those in Y but how much less is unknown. E) one-fourth those in Y.


A) 3 times those in Y.
B) more than 3 times those in Y.
C) between 2 and 3 times those in Y.
D) less than twice those in Y but how much less is unknown.
E) one-fourth those in Y.

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