For nations with relatively high wage rates,
a. the wage costs per unit of a good produced are usually relatively high.
b. foreign exporters have an unfair advantage over domestic producers.
c. tariffs would improve the allocation of scarce resources.
d. the wage rates often reflect relatively high labor productivity.
d. the wage rates often reflect relatively high labor productivity.
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Mary takes 4 minutes to make a sandwich and 6 minutes to mix a cocktail. Her sister Ash takes 4 minutes to make a sandwich and 4 minutes to mix a cocktail. Calculate each sister's opportunity cost
Which of the two sisters has an absolute advantage in making sandwiches? In mixing cocktails? Which of the two has a comparative advantage in making sandwiches? In mixing cocktails?
Which of the following is the best example of a firm that competes in a monopolistically competitive market?
A) Microsoft B) the U.S. Postal Service C) an automobile manufacturer D) a movie theater
Pepsi One is a close substitute for Diet Coke. When Pepsi introduced Pepsi One, the price elasticity of demand for Diet Coke ________ and Coke's ability to raise revenues through price increases ________.
A. decreased; was reduced B. had no effect; was reduced C. increased; was reduced D. increased; increased
All of the following took place during the Great Depression EXCEPT
A) increase in unemployment from about 3.4 percent to about 25 percent and a decrease in real GDP by about 30 percent between 1929 in 1933. B) an increase in taxes because of the fear that budget deficits would undermine business confidence. C) a fall in the money supply by more than 30 percent. D) a rise in inflation during the early 1930s. E) the stock market crashed by about one-third in October of 1929.