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Domestic Textile Workers Are More Likely to Lose Their Jobs

Question 38

Multiple Choice

Domestic textile workers are more likely to lose their jobs to foreigners when


A) the marginal product of foreign workers divided by their wage is lower than the same ratio for domestic workers.
B) they are close substitutes for foreign workers.
C) the scale effect for complementary inputs is small.
D) wages are a small fraction of total costs.

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