If Wage Rates Are Lower in Mexico Than in Germany

question 37

True/False

If wage rates are lower in Mexico than in Germany, labor costs per unit of output can still be higher in Mexico.

---

Definitions:

Growth Rate

The rate at which a population, organism, or economic measure increases in size over a given period of time.

Exponential Growth

A process of increase in number or size, at a constantly growing rate.

J-shaped Curve

A concept or graphical representation showing a relationship between two variables where an initial increase in the independent variable results in a decrease in the dependent variable, followed by a significant increase.

Anti-predator Defense

Strategies and adaptations developed by animals to evade, deter, or survive attacks from predators.