Hapland and Genoshia have just started to trade with each other.Hapland exports goods produced with skilled labor and imports goods made with unskilled labor from Genoshia.Over time,we would expect that the wages of skilled labor in Hapland will
A) rise, and the wages of unskilled labor in Hapland will fall.
B) fall, and the wages of unskilled labor in Hapland will rise.
C) rise, and the wages of unskilled labor in Hapland will rise.
D) fall, and the wages of unskilled labor in Hapland will fall.

Question

Quizplus · Accepted Answer

As Hapland exports goods produced with skilled labor, the demand for skilled labor will increase, leading to higher wages for skilled labor. Conversely, as Hapland imports goods made with unskilled labor, the demand for unskilled labor will decrease, leading to lower wages for unskilled labor.

Hapland and Genoshia Have Just Started to Trade with Each