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:

E. coli

A common bacterium found in the intestines of humans and animals that can cause food poisoning when consumed in contaminated food.

Microbes

Tiny, single-celled organisms, including bacteria, viruses, fungi, and protozoa, that can exist in a variety of environments.

Archae

A domain of single-celled microorganisms that are genetically distinct from bacteria and eukaryotes, often living in extreme environments.

Protists

Eukaryotic organisms that are not animals, plants, or fungi, often found in moist or aquatic environments.