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Newly Formed Trade Unions Raise Wages for Workers in Country

question 121

Multiple Choice

Newly formed trade unions raise wages for workers in Country X, where cars are manufactured. The higher wages increase the costs for the car manufacturers, who then relocate to Country Y, where labor costs are lower. Car manufacturing begins to thrive in Country Y relative to Country X. Which answer BEST describes the concept highlighted by this scenario?


Definitions:

Thomas Malthus

An English economist and demographer known for his theory that population growth would outstrip food supply, leading to poverty and famine.

Birthrates

Birthrates measure the number of live births per thousand people in a population over a specific period, reflecting the rate at which a population is growing.

Living Standards

Indicate the wealth, comfort, material goods, and necessities available to an individual or society.

Per Capita Energy Use

The average amount of energy consumed per person within a given geographic area.

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