The Reason That Average Labor Costs Are Higher in the United

question 114

Multiple Choice

The reason that average labor costs are higher in the United States than in Haiti is that

• A) workers are more productive in the United States.
• B) U.S. workers have a comparative advantage.
• C) Haitian workers have a comparative advantage.
• D) Haitian workers do not have union representation.

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Definitions:

Monthly Compounded

A method where interest adds to the principal sum at the end of each month, allowing for the interest in the next month to be based on the new total.

Annuity Investment

A financial product typically sold by insurance companies that provides periodic payments to the holder for a defined period of time or for life.

Effective Rate

The interest rate on a loan or financial product restated from the nominal rate as an interest rate with annual compound interest payable in arrears.

Annuity Investment

An economic tool designed to disburse a consistent flow of funds to someone, primarily for retirement preparation purposes.