An Essential Point, Among Many, in the Refutation of the "Cheap

question 181

Multiple Choice

An essential point, among many, in the refutation of the "cheap foreign labor" argument is that

• A)foreign workers have a lower standard of living.
• B)foreign workers are less productive.
• C)low foreign wages mean fewer exports for the United States.
• D)the United States does not benefit from cheap foreign labor so the goods should be kept out.

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Definitions:

Wages of Mechanics

Compensation paid to mechanics for their labor, typically based on an hourly rate or salary.

Conversion Cost

The sum of labor and overhead expenses incurred to convert raw materials into finished products.

Direct Materials Cost

The cost of raw materials that are directly used in the production of a product.

Factory Overhead Cost

Indirect manufacturing expenses that are not directly tied to the production of goods, like utilities and salary of supervisors.