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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