Lower Wages in China Reflect _____ Labor Productivity in China

question 215

Multiple Choice

Lower wages in China reflect _____ labor productivity in China than in the United States.This means that if the United States moved high-tech industries to China,the overall cost of production would be _____ in China than in the United States.

• A)lower;higher
• B)lower;lower
• C)higher;higher
• D)higher;lower

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Definitions:

Income Statement

An account that displays the earnings, costs, and overall profit of a business for a given period.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the cushion a company has before it incurs a loss.

Contribution Format

A type of income statement where costs are divided into variable and fixed, highlighting the contribution margin.

Income Statement

A financial report detailing a company's incomes, costs, and net earnings during a defined timeframe.