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If a Worker in Chile Earns 100 Pesos Per Day

Question 7

Multiple Choice

If a worker in Chile earns 100 pesos per day producing four widgets and a worker in Bolivia earns 50 pesos per day producing 2 widgets, then:


A) unit labor costs are the same in both countries.
B) unit labor costs are lower in Chile.
C) unit labor costs are lower in Bolivia.
D) one cannot determine unit labor costs.
E) widgets should be produced in Venezuela.

Correct Answer:

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