In Industry X, All of Its Output Is Made in America

question 21

Multiple Choice

In industry X, all of its output is made in America. But then a foreign nation's workers can produce at least part of the industry X's good at a lower wage. The reduction in American jobs in industry X will be smaller when

• A) American workers, while getting a wage twice that of foreigners, are 50% more productive.
• B) the supply of labor supply is highly elastic.
• C) the elasticity of supply of American workers is more inelastic.
• D) American workers are excellent substitutes for foreign workers.

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