Which of the Following Statements Regarding the Cheap Foreign Labor

question 27

Multiple Choice

Which of the following statements regarding the cheap foreign labor argument is correct?

• A)If there is an abrupt change in foreign competition that severely penalizes American workers, the U.S.government should immediately adopt protectionist measures.
• B)In the long run, labor will be cheap (wages are low) in those nations where labor is most productive.
• C)If workers in other countries are willing to supply their products with little compensation, this must ultimately raise the standard of living of the average American worker.
• D)American workers can never suffer from foreign competition since our monetary and fiscal policies always produce high employment at home.

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Definitions:

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Physical Inventory Count

A process of counting actual inventory to verify the quantity on hand, usually performed at the end of an accounting period.

Inventory

Inventory consists of the goods and materials a business holds for the purpose of resale or production.

Long-Term Asset

A resource that is expected to provide economic benefits to a company for more than one fiscal year.