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Exhibit 29-2 -Suppose Two Countries Trade Two Goods Without Government Restrictions. If

Question 54

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Exhibit 29-2 Exhibit 29-2 -Suppose two countries trade two goods without government restrictions. If transportation costs are negligible and markets are competitive, then the price of the goods A) will be lower in the high-wage country. B) will be lower in the low-wage country. C) must be the same in both countries. D) could be lower in one country than the other. E) could be higher in one country than the other.
-Suppose two countries trade two goods without government restrictions. If transportation costs are negligible and markets are competitive, then the price of the goods


A) will be lower in the high-wage country.
B) will be lower in the low-wage country.
C) must be the same in both countries.
D) could be lower in one country than the other.
E) could be higher in one country than the other.

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