Asked by Trang Nguyen on May 12, 2024
Verified
A major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is that
A) labor costs and product prices are not related.
B) there is no discernible relationship between wage rates and labor productivity.
C) wage rates and labor productivity are directly related.
D) wage rates and labor productivity are inversely related.
Wage Rates
The standardized amount of payment given to employees for their services, usually expressed per hour or per annum.
Labor Productivity
The quantity of goods and services that a worker produces in a given amount of time.
- Acquire knowledge of the debates surrounding trade protection, specifically the infant industry rationale, issues of national security, and the consequences for job markets.
Verified Answer
MT
Mari-world The hottestMay 16, 2024
Final Answer :
C
Explanation :
Wage rates and labor productivity are directly related because higher productivity can lead to higher wages, as workers are able to produce more value. This undermines the argument for trade barriers based on low foreign wages, as productivity differences can explain wage disparities.
Learning Objectives
- Acquire knowledge of the debates surrounding trade protection, specifically the infant industry rationale, issues of national security, and the consequences for job markets.
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