Opening Trade Between a Nation That Has "Cheap Labor" and One

question 70

Multiple Choice

Opening trade between a nation that has "cheap labor" and one that has "expensive labor" will

• A)lower the standard of living in both countries.
• B)raise the standard of living in both countries.
• C)make some workers less efficient.
• D)lead to an inappropriate allocation of resources.

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Definitions:

Piecework Rate Plans

Compensation systems where employees are paid based on the quantity of work produced or tasks completed.

Routine Jobs

Work that involves repetitive tasks following a set procedure or sequence, often with little to no variation in daily activities.

Differential Piece Rate System

The Differential Piece Rate System is a pay structure where employees are compensated based on the quantity of work produced, with rates increasing once production exceeds a standard level.