Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be

A protectionist policy generally enhances free trade.

a. true b. false

Suppose that U.S. firms outsource computer manufacturing jobs to China, it is expected that

A) the wage rate for workers manufacturing computers will decrease in the U.S. but increase in China. B) the wage rate for workers manufacturing computers will increase in the U.S. but decrease in China. C) the wage rate for workers manufacturing computers will increase in both the U.S. and China. D) the wage rate for workers manufacturing computers will decrease in both the U.S. and China.