Question 9 (Mandatory) (1 point)
According to the theory of trade, if two countries trade with each other:
a) consumption in one country will fall and wages in that country will also fall.
b) wages in the country with a comparative advantage will rise, and wages in the country without a
comparative advantage will fall.
c) wage costs will remain low if both countries specialize in producing the goods for which they have
a comparative advantage.
d) trade incentivizes specialization in production, which raises labor productivity and wages of both
countries.