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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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