Which of the Following Statements Describes a Benefit of Low

question 237

Multiple Choice

Which of the following statements describes a benefit of low foreign wages?

• A) Domestic jobs are destroyed.
• B) Many domestic workers must be retrained.
• C) Domestic consumers pay lower prices.
• D) Domestic firms that compete with the imports lose profit.

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Definitions:

Supply Equation

A mathematical representation showing the relationship between the quantity of goods suppliers are willing to produce and various influencing factors like price and production costs.

Per-Unit Tax

A tax imposed on a product based on a fixed amount for each unit sold, affecting the supply curve by increasing the cost of production.

Units Sold

The number of individual items or products that have been sold over a specific period.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to price or other factors.