While high-paid American workers fear competition with low-paid foreign workers, low-paid foreign workers fear competition with high-paid American workers. Why?
A) Because high wages are the result of extensive tariff and other trade restrictions.
B) Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive.
C) It is completely irrational and unfounded.
D) Because America has such a large market it can protect its workers.
E) Because high wages mean that U.S. workers can buy more goods and services.
B
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Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat. Upon receiving a refund of $25,000 from the dealer, what will happen to the ATC of producing 10,000 fish?
a. increases by $25 b. increases by $2.50 c. does not change d. decreases by $2.50 e. decreases by $25
The aggregate supply curve is drawn with
A. the price level on the vertical axis and nominal GDP on the horizontal. B. nominal GDP on the vertical axis and real GDP on the horizontal. C. the price level on the vertical axis and real GDP on the horizontal. D. real GDP on the horizontal axis and the rate of inflation on the vertical.