Suppose the lowest-wage state in the United States is West Virginia and the highest-wage state is New York. Which of the following would be true?
A) If New York trades with West Virginia, consumers in New York will be worse off.
B) If New York trades with West Virginia, wages in New York will fall until they equal the wages in West Virginia.
C) New York would be better off if its state government imposed restrictions on the importation of goods made in West Virginia.
D) Both New York and West Virginia will be better off if they are allowed to trade freely.
Correct Answer:
Verified
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