In the Long Run, Foreign Labor Remains Cheap When and If

question 92

Multiple Choice

In the long run, foreign labor remains cheap when and if

• A)it becomes highly efficient and competes successfully internationally.
• B)countries erect barriers to trade between poor countries.
• C)productivity increases more rapidly in poor countries than in rich countries.
• D)it remains inefficient compared to other countries' labor.

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Definitions:

Retains Earnings

Profits that a company keeps after dividends have been paid out to shareholders, often re-invested into the business for growth, paying off debt, or other purposes.

Investment Purposes

The intention behind allocating resources, often funds, into financial assets, real estate, or business ventures aiming to generate future returns.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, considered a key factor in determining the resources employed by a firm.

Rental Cost

The price paid for the temporary use of a good, service, or property owned by another entity.