If Unskilled Labor Is Relatively Plentiful and Cheap in Many

question 419

Multiple Choice

If unskilled labor is relatively plentiful and cheap in many foreign countries, then as the United States expands its trade with these foreign countries, the domestic demand for

• A)both skilled and unskilled labor will rise proportionately.
• B)skilled labor will fall and the demand for unskilled labor will rise.
• C)skilled labor will rise and the demand for unskilled labor will fall.
• D)both skilled and unskilled labor will be unaffected, assuming no barriers to free trade.

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Definitions:

Operating Activities

Transactions and events related to the core business functions, including revenue and expense activities that affect net income on the income statement.

Direct Method

A method for creating the cash flow statement by directly listing the actual cash flows associated with operating activities.

Operating Activities

Business actions that are involved in the day-to-day functions of producing goods, offering services, and other core operations.

Direct Method

A way of allocating service department costs directly to production departments without any consideration for services rendered between service departments.