Which of the Following Is Not True Regarding the Argument

question 31

Multiple Choice

Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?

• A)Wages may be only a small fraction of total production costs.
• B)High wages do not necessarily imply high labor costs when productivity is taken into account.
• C)U.S.workers are among the most productive in the world partly because they are well educated and trained compared to other countries.
• D)U.S.workers are highly productive partly because they are provided with abundant supplies of machines and physical capital.
• E)It is not possible that the U.S.wages, even when supported by high U.S.output per worker, can render U.S.products competitive with low-wage countries.

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Definitions:

Doll Houses

Miniature houses designed for children to play with, often replicating the structure and furnishings of a full-size house.

Labor Cost

The total expenditures for wages, benefits, and payroll taxes that employers incur in compensation for the work performed by their employees.

Derived Demand

The demand for a resource; it stems from the demand for the final good the resource helps produce.

Input Demand

The requirement for resources and materials necessary to produce goods and services.