A Comparison of Wages in the U

question 50

Multiple Choice

A comparison of wages in the U.S.and in less developed countries shows that:

• A)high-wage U.S.labor cannot compete with low-wage labor in many developing countries.
• B)workers in the U.S.are more productive than workers in less developed countries.
• C)the substitution of labor for capital depresses wages and increases unemployment.
• D)the supply of labor in developed countries had increased faster than demand.

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Definitions:

Transfer Price

The price at which goods or services are sold between divisions within the same company or between companies under common control.

Variable

A quantity or factor in an experiment or equation that can change or be changed.

Variable Production Cost

Costs that vary directly with the level of production output, including raw materials, direct labor, and other expenses that increase with production volume.

Sales Price

Sales Price is the amount of money charged for a product or service in the market.