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:

Market Mechanisms

Processes through which the prices of goods and services are established in a free market economy, based largely on supply and demand.

Soviet Union

A federal socialist state in Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), a major world power during its existence.

Political Dissent

The expression of disagreement or opposition to prevailing ideas or policies, especially in a political context.

Southern Strategy

A political strategy aimed at gaining support in the southern United States, often associated with appealing to racial sentiments.