Now suppose that Southern workers receive a raise to €2 per day. Will trade be possible at the exchange rate you found in the last question?
A)Yes
B)No

Name: Now suppose that Southern workers receive a raise to €2 per day. Will trade be possible at the exchange rate you found in the last question? A)Yes B)No
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Question

Quizplus · Accepted Answer

Trade will still be possible if the exchange rate allows for comparative advantage and benefits both parties, regardless of the wage increase.

Now Suppose That Southern Workers Receive a Raise to €2