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
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In case of a decrease in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases.
According to Keynes, the main institutional barriers to downward wage and price flexibility were (1) _________________ and (2) ____________________.
Fill in the blank(s) with the appropriate word(s).