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Exhibit 29-1 -According to Exhibit 29-1, Which of the Following Is True

Question 35

Multiple Choice

Exhibit 29-1 Exhibit 29-1   -According to Exhibit 29-1, which of the following is true? A) As workers are more productive in China, wages will be higher. B) As workers are more productive in China, China will have a comparative advantage in the production of both goods. C) As workers are less productive in India, wages will be lower, and they will have a comparative advantage in the production of both goods. D) Indian workers are less productive at producing both goods, so China will not find it advantageous to trade with India. E) Indian workers are less productive at producing both goods, so India will not be able to gain from trade with China.
-According to Exhibit 29-1, which of the following is true?


A) As workers are more productive in China, wages will be higher.
B) As workers are more productive in China, China will have a comparative advantage in the production of both goods.
C) As workers are less productive in India, wages will be lower, and they will have a comparative advantage in the production of both goods.
D) Indian workers are less productive at producing both goods, so China will not find it advantageous to trade with India.
E) Indian workers are less productive at producing both goods, so India will not be able to gain from trade with China.

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