The Proponents of the Cheap Foreign Labour Argument Mistakenly

question 149

Multiple Choice

The proponents of the cheap foreign labour argument mistakenly:

• A)look at the labour costs per unit rather than labour costs per hour.
• B)look at the labour costs per hour rather than labour costs per unit of output.
• C)believe that labour costs per unit are not important.
• D)believe that the wage rates in Canada should be reduced in order to compete with low-wage nations.

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Definitions:

Income

Money earned from work, investments, business, or any other sources, representing the financial gain derived by individuals or businesses.

Technological Advance

A phase of innovation where new technologies significantly improve processes, goods, or services.

Manufacturing Industries

Sectors of the economy that use machinery, tools, and labor to produce goods for use or sale.

Pure Competition

A market structure characterized by a large number of small firms all producing homogeneous products and facing no barriers to entry or exit.