(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:

Distractions

External or internal factors that divert an individual's attention away from the task at hand, potentially decreasing productivity and performance.

Culture Specific

Characteristics, beliefs, or practices that are unique to a particular society, community, or group.

Unconsciously

Occurring without one's awareness, reflecting actions or thoughts that are not controlled or deliberated by the conscious mind.

Paraphrasing

The process of rewording or rephrasing information using different vocabulary and sentence structures while retaining the original meaning.