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If Country a Has Wages That Are Substantially Less Than

Question 93

Multiple Choice

If country A has wages that are substantially less than those in country B,


A) country B will benefit by placing tariffs on imports from country A.
B) country A will not have to subsidize its export industries.
C) country A will have an absolute advantage over country B.
D) the pattern of comparative advantage will depend also on the relative productivities of labour in the two countries.
E) country B will import from A but will not be able to export to country A.

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