Assume That Labor Is the Only Factor of Production and That

question 213

Multiple Choice

Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in the United Kingdom equal $10 per hour.Production costs would be lower in the United States than the United Kingdom if:

• A) U.S.labor productivity equaled 40 units per hour while U.K.labor productivity equaled 15 units per hour
• B) U.S.labor productivity equaled 30 units per hour while U.K.labor productivity equaled 20 units per hour
• C) U.S.labor productivity equaled 20 units per hour while U.K.labor productivity equaled 30 units per hour
• D) U.S.labor productivity equaled 15 units per hour while U.K.labor productivity equaled 25 units per hour

---

Definitions:

Basic Economic Questions

Fundamental questions that every economic system must address: What to produce, how to produce, and for whom to produce.

Private-Property Rights

Legal provisions that allow individuals to own, control, and benefit from property such as land, buildings, or intellectual property.

Competitive Economic Behavior

Actions exhibited by businesses or individuals in an attempt to achieve a market advantage, often through price, quality, and service.

Market Economies

Economic systems in which decisions about production, investment, and distribution are based on supply and demand, and prices of goods and services are determined in free markets.