The activities in which Australian workers are relatively more productive
A) pay higher wages.
B) are those in which Australia has a comparative advantage.
C) are at risk of disappearing from Australia if there was free trade.
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

The activities in which Australian workers are relatively more productive pay higher wages because productivity is a key determinant of wage levels. Additionally, these activities are those in which Australia has a comparative advantage, meaning the country can produce these goods or services at a lower opportunity cost than other countries. This comparative advantage is what guides international trade patterns.

The Activities in Which Australian Workers Are Relatively More Productive