The reason that average labor costs are higher in the United States than in Haiti is that
A) workers are more productive in the United States.
B) U.S. workers have a comparative advantage.
C) Haitian workers have a comparative advantage.
D) Haitian workers do not have union representation.

Question

Quizplus · Accepted Answer

Workers in the United States are generally more productive due to better technology, education, and infrastructure, which justifies higher labor costs. Comparative advantage and union representation are not direct reasons for the difference in average labor costs.

The Reason That Average Labor Costs Are Higher in the United