Assume that only two countries, A and B, exist.

-Refer to the table above. You are told that Country B has no minimum wage or child labor laws. Now the correct answer is
A) country B will export good S.
B) country A will export good S.
C) both countries will export good S.
D) trade will not occur between these two countries.
E) both countries will import good S.

Question

Assume that only two countries, A and B, exist.
 
-Refer to the table above. You are told that Country B has no minimum wage or child labor laws. Now the correct answer is
A) country B will export good S. 
B) country A will export good S. 
C) both countries will export good S. 
D) trade will not occur between these two countries. 
E) both countries will import good S.

Quizplus · Accepted Answer

Country B, without minimum wage or child labor laws, likely has lower production costs, making it more competitive in exporting good S.

Assume That Only Two Countries, a and B, Exist