Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?
a. Wages may be only a small fraction of total production costs.
b. High wages do not necessarily imply high labor costs when productivity is taken into account.
c. U.S. workers are among the most productive in the world partly because they are well educated and trained compared to other countries.
d. U.S. workers are highly productive partly because they are provided with abundant supplies of machines and physical capital.
e. It is not possible that the U.S. wages, even when supported by high U.S. output per worker, can render U.S. products competitive with low-wage countries.
E
You might also like to view...
A bank has excess reserves of $1,000 and demand deposit liabilities of $80,000 when the reserve requirement is 25 percent. If the reserve requirement is lowered to 20 percent, the bank's excess reserves will be
A) $1,000. B) $5,000. C) $8,000. D) $9,000.
Currently, virtually the entire deficit in the U.S. is
a. cyclical. b. structural. c. transitional. d. frictional.
During a recession, government deficits can grow because:
A. government spending often increases as part of an expansionary fiscal policy. B. income tax revenues tend to decrease because people are earning less. C. sales tax revenues tend to decrease because people are spending less. D. All of these are true.
Following an expansion of the money supply, a government committed to maintaining a fixed exchange rate must
A. intervene in the foreign exchange market to sell foreign currency and buy domestic currency. B. accept a surplus in its current account. C. increase its level of government expenditure and autonomous investments. D. not use sterilized intervention.