Author Question: One of the common arguments against sweatshops in developing countries is that wages that the ... (Read 78 times)

vicky · **on:** Jun 29, 2018

One of the common arguments against sweatshops in developing countries is that wages that the workers are being paid are too low. Commentators often use dollar comparisons to show that, compared to U.S.

standards, sweatshop workers are paid unfairly low wages. Use what you have read about the supply of labor to examine this argument.

Question 2

If the production possibilities frontier is linear, then

A) opportunity costs are increasing as more of one good is produced.
B) opportunity costs are decreasing as more of one good is produced.
C) opportunity costs are constant as more of one good is produced.
D) it is easy to efficiently produce output.

zhanghao · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Workers in factories in developing countries are usually willing to accept the wage that is being paid as it is better than their next best alternative. Their next best alternative could be unemployment or working at a lower-paying job. While this does not justify objectionable working conditions or violations of labor laws, the wages that they are paid could be a reflection of the lack of other opportunities in these countries.

Answer to Question 2

C