The factor-price equalization theorem tells us that free trade between two countries should result in
A. all workers in the two countries having the same skill level.
B. all workers in the two countries earning the same wage rate.
C. all workers of the same skill level earning the same wage rate in the two countries.
D. all input prices being equal within each country.
Answer: C
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The Phillips curve trade-off relationship implies that
A) there is no relationship between inflation and unemployment, at least in the long run. B) the government can fine-tune the economy and generate both the natural rate of unemployment and zero inflation. C) the government can fine-tune the economy and pick the most preferred combination of unemployment and inflation. D) low unemployment can be obtained only by generating rapidly increasing inflation.
A disadvantage of the corporate form of business organization is that corporate income is taxed twice
a. True b. False