(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. Which country has a higher relative wage for skilled labor?
A) India
B) the United States
C) Both India and the United States have the same relative wages for skilled labor.
D) The United States and India have the same relative wage for unskilled labor.

Question

(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. Which country has a higher relative wage for skilled labor? 
A) India 
B) the United States 
C) Both India and the United States have the same relative wages for skilled labor. 
D) The United States and India have the same relative wage for unskilled labor.

Quizplus · Accepted Answer

The Answer of (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. Which country has a higher relative wage for skilled labor? 
A) India 
B) the United States 
C) Both India and the United States have the same relative wages for skilled labor. 
D) The United States and India have the same relative wage for unskilled labor.

(Table: Labor Requirements) the Table Gives U