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
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A) decrease; a higher price level increases consumption, investment, and net exports. B) increase; a higher price level increases consumption, investment, and net exports. C) decrease; a higher price level reduces consumption, investment, and net exports. D) increase; a higher price level reduces consumption, investment, and net exports.
Over time, the price of personal computers has fallen dramatically. All else constant, this would lead us to expect that demand for personal computers has become more price elastic
Indicate whether the statement is true or false