Which of the Following Is Not True Regarding the Argument

question 31

Multiple Choice

Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?

• A)Wages may be only a small fraction of total production costs.
• B)High wages do not necessarily imply high labor costs when productivity is taken into account.
• C)U.S.workers are among the most productive in the world partly because they are well educated and trained compared to other countries.
• D)U.S.workers are highly productive partly because they are provided with abundant supplies of machines and physical capital.
• E)It is not possible that the U.S.wages, even when supported by high U.S.output per worker, can render U.S.products competitive with low-wage countries.

---

Definitions:

Discount Rate

In the context of discounted cash flow analysis, this is the interest rate used to establish the present-day value of future cash inflows.

Net Operating Cash Inflows

This represents the cash that a business generates from its ordinary, operational activities, excluding financing or investment cash flows.

Working Capital Investment

The funding required to cover the operation's day-to-day financial activities.

Salvage Value

The estimated remaining valuation of an asset at the close of its usability period.