While High-Paid Australian Workers Fear Competition with Low-Paid Foreign Workers

question 57

Multiple Choice

While high-paid Australian workers fear competition with low-paid foreign workers, low-paid foreign workers fear competition with high-paid Australian workers. Why?

• A) Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive.
• B) It is completely irrational and unfounded.
• C) Because Australia has such a large market it can protect its workers.
• D) Because high wages mean that Australian workers can buy more goods and services.
• E) Because high wages are the result of extensive tariff and other trade restrictions.

---

Definitions:

Stock Portfolio

A collection of stocks held by an individual or institution, designed to achieve specified financial goals.

Bond Portfolio

A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Interest Rate Risk

The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.