A worker in Vietnam can earn $6 per day making cotton cloth on a hand loom. A worker in the United States can earn $85 per day making cotton cloth with a mechanical loom. What is the likely explanation for the difference in wages?
a. U.S. textile workers belong to a union, whereas Vietnamese textile workers do not belong to a union.
b. There is little demand for cotton cloth in Vietnam and great demand in the U.S.
c. Labor is more productive making cotton cloth with a mechanical loom than with a hand loom.
d. Vietnam has a low-wage policy to make its textile industry more competitive in world markets.
c
You might also like to view...
According to Classical interest rate theory, which of the following will increase the equilibrium interest rate?
A) A decrease in investment B) A decrease in saving C) An increase in money demand D) A decrease in money demand
Economics is a study of how
a. people interact with each other in social situations b. too many goods and services can make people unhappy c. to make resources infinite d. we allocate our resources to satisfy our wants e. to satisfy all of our wants as a society
The figure below shows the supply and demand curves for oranges in Smallville.
At a price of $4 per pound there will be an excess ________ of ________ pounds of oranges per day.
A. supply; 10 B. supply; 20 C. demand; 30 D. demand; 20
Which of the following is an accurate statement concerning the macroeconomy of the United States?
A. Politics never takes precedence over the country's economic problems. B. The goals of full employment, price stability and vigorous economic growth are frequently met. C. The ups and downs of the business cycle have been more severe since World War II. D. The economy continues to experience the ups and downs of the business cycle.