Which of the following would be an expected result of substantially higher wages in the U.S. automobile industry?
A) An increase in the real wages of workers outside the industry.
B) An increase in the price of automobiles produced in the United States.
C) A reduction in the demand for foreign-produced automobiles.
D) An increase in the profit rate of U.S. automobile producers.

Question

Quizplus · Accepted Answer

Higher wages in the U.S. automobile industry would likely lead to increased production costs, which could result in higher prices for automobiles produced in the United States.

Which of the Following Would Be an Expected Result of Substantially