While High-Paid American Workers Fear Competition with Low-Paid Foreign Workers,low-Paid

question 49

Multiple Choice

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

• A) It is completely irrational and unfounded.
• B) Because America has such a large market it can protect its workers.
• C) Because high wages reflect high worker productivity and the low-paid foreign workers are not as productive.
• D) Because high wages are the result of extensive tariff and other trade restrictions.
• E) Because high wages mean that U.S. workers can buy more goods and services.

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Definitions:

Government Bonds

Securities issued by a government to raise funds from the public to finance its expenditure needs.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability.

U.S. Treasury Department

A federal government department responsible for managing government revenue, issuing currency, and supervising national banks.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.