Faced with the Evidence of Poor Working Conditions and Low

question 29

Multiple Choice

Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists

• A) shrug their shoulders and ignore the issue.
• B) agree that trade theory is thus proven hollow and internally inconsistent.
• C) argue that U.S. consumers should not consume lettuce.
• D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade.
• E) argue that Mexico's generally high overall productivity offsets these conditions.

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Definitions:

1950s

A decade marked by post-World War II recovery, cultural change, and significant technological progress in many countries.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.

Labor Force

The total number of people both employed and actively seeking employment in an economy.

Labor Force Participation Rate

The labor force as a percentage of the adult population.