Assume That Labor Is the Only Factor of Production and That

question 11

Multiple Choice

Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if

• A) U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour.
• B) U.S. labor productivity equaled 30 units per hour and Japan's 20 units per hour.
• C) U.S. labor productivity equaled 20 units per hour and Japan's 30 units per hour.
• D) U.S. labor productivity equaled 15 units per hour and Japan's 25 units per hour.
• E) U.S. labor productivity equaled 15 units per hour and Japan's 40 units per hour.

---

Definitions:

Egas Moniz

A Portuguese neurologist who is credited with the development of cerebral angiography and the controversial prefrontal leucotomy, for which he was awarded the Nobel Prize in Physiology or Medicine in 1949.

Dormitory-Like Facility

A residential setup where individuals share living quarters and resources, often associated with colleges or boarding schools.

Paraprofessionals

Individuals with specialized training who assist professionals, especially in fields like education and healthcare, but do not have the full professional accreditation.

Philippe Pinel

A French physician known for his work in the late 18th and early 19th centuries, significantly contributing to the reform of mental health care.