Question
2.Country A has a large pool of skilled workers earning $50 per hour and a small pool of unskilled workers earning $18 per hour.Country B
2.Country A has a large pool of skilled workers earning $50 per hour and a small pool of unskilled workers earning $18 per hour.Country B has a small pool of skilled workers earning $60 per hour and a large pool of unskilled workers earning $8 per hour.Trade theory predicts that if A and B engage in international trade with each other,
a)real wages paid to skilled workers will fall in A
b)unskilled wages will become more unequal between A and B
c)real incomes will become more equal within B
d)the wages of unskilled workers in B will fall
e)wages to all workers in both countries will rise
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