(Table: Labor Requirements) the Table Gives U

question 59

Multiple Choice

(Table: Labor Requirements) The table gives U.S. and Indian labor requirements (hours per unit of output) needed in each of four activities to produce the final product. Suppose that wages of unskilled and skilled workers are $10 and $20 in the United States and $1 and $5 in India. Which country has a higher relative wage for skilled labor?

• A) India
• B) the United States
• C) Both India and the United States have the same relative wages for skilled labor.
• D) The United States and India have the same relative wage for unskilled labor.

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Definitions:

Autokinetic Effect

A visual illusion where a small, stationary point of light in a dark environment appears to move because of involuntary eye movements.

Informational Influence

A social influence that leads individuals to accept information from others as evidence about reality, often leading to internalization or private acceptance.

Low-Ball Technique

Influence technique based on commitment, in which one first gets a person to comply with a seemingly low-cost request and only later reveals hidden additional costs.

Door-In-The-Face Technique

Influence technique based on reciprocity, in which one starts with an inflated request and then retreats to a smaller request that appears to be a concession.