Janitors in India Might Make $1,000 Per Year, While They

question 38

Multiple Choice

Janitors in India might make $1,000 per year, while they could easily earn $20,000 per year in the United States. How is this a forgone gain from trade?

• A) Indian janitors are less concerned with earning a high wage than are American janitors.
• B) The United States is a cleaner country than India, so it has less use for janitors.
• C) Total surplus would be higher if the Indian janitors could come to the United States to work.
• D) Total surplus would be higher if American janitors could go to India to work.

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Definitions:

Internal Failure Cost

Costs incurred when a product does not meet quality standards before being shipped to the customer, including scrap, rework, and downtime.

Quality Improvement Projects

Initiatives aimed at enhancing the quality of products or services, often involving systematic efforts to eliminate issues and improve processes.

Debugging Software Errors

The process of identifying, analyzing, and correcting errors in software code to ensure its correct and efficient functioning.

Internal Failure Cost

Costs associated with defects found before the product reaches the customer, such as scrap and rework expenses.