Oatley Claims That Global Wage Differences Are Not Caused by Different

question 35

Multiple Choice

Oatley claims that global wage differences are not caused by different labor market regulations but by

• A) desperate uneducated workers in developing countries who are easily manipulated.
• B) corporate investors who want higher profits available in developing countries.
• C) different levels of productivity.
• D) different differentials of living costs compared to wage levels.
• E) conservative governments who want to undermine labor movements in their own countries.

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Definitions:

High Inflation

Is a term describing a situation where prices for goods and services rise excessively, reducing purchasing power and potentially destabilizing the economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Supply-Side

A macroeconomic theory arguing that economic growth is most effectively created by lowering taxes and decreasing regulation.

Economic Program

A set of coordinated policies and plans undertaken by a government or organization to achieve specific economic objectives.