Joaquim Works at a Local Factory Assembling Electronics for a North

question 21

Multiple Choice

Joaquim works at a local factory assembling electronics for a North American technology manufacturing firm.He is a contract worker,which means that he works only when the firm has a specific production order to fill.Due to periodic layoffs his average daily wage is approximately US$1.15.According to the text,what is the term given to an average daily wage that falls below US$1.90?

• A) international extreme poverty line
• B) regionally adjusted rate of income
• C) internationally adjusted poverty statistics
• D) local extreme wage disparity

---

Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Loanable Funds Market

The hypothetical market that illustrates the interaction between borrowers who demand loanable funds and lenders who supply loanable funds, determining the equilibrium real interest rate.

Surplus

Surplus is the situation in which the quantity supplied of a product or service exceeds the quantity demanded, often leading to lower prices.

Equilibrium Interest Rate

The interest rate at which the supply of savings meets the demand for investment funds in a market, leading to an economic balance.