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.

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales, such as raw materials and labor expenses.

Steel

An alloy of iron and carbon, and sometimes other elements, known for its high tensile strength and ability to be shaped into various forms.

Total Cost Curve

A graphical representation that shows how the total cost of production changes as the quantity of output changes.