(Table: Labor Requirements) the Table Gives U

question 53

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. Now suppose that the United States and India engage in offshoring. What will happen to the relative wage for skilled labor in each country?

• A) The Indian relative wage for skilled labor will increase, and the U.S. relative wage of skilled labor will decrease.
• B) The Indian relative wage for skilled labor will decrease, and the U.S. relative wage of skilled labor will increase.
• C) Both the Indian and U.S. relative wages for skilled labor will increase.
• D) Both the Indian and U.S. relative wages for skilled labor will decrease.

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Definitions:

Type A Orientation

A personality type characterized by competitiveness, impatience, aggression, and a constant sense of urgency, often linked to higher stress levels and achievement orientation.

Authoritarianism

A governing or leadership style characterized by absolute or blind obedience to authority, as opposed to individual freedom and related to centralization of power.

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a lack of morality, and a focus on self-interest and deception.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs, ideas, or values.