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Commerce · Q149

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 149

Q149

Assertion (A): Free international trade necessarily lowers the real wage of the scarce factor of production in terms of any good. Reason (R): If the real wage declines in terms of every good, real income must suffer regardless of the tastes and expenditure patterns of the labourer as consumers.

A.
Both A and R are true and R is the correct explanation of A
Answer
B.
Both A and Rare true but R is NOT a correct explanation of A
C.
A is true but R is false
D.
A is false but R is true

Answer: Option A

Solution

Answer: Option A
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