Author Question: High wage countries like the United States tend to use less labor-intensive production methods than ... (Read 26 times)

jayhills49 · **on:** Jun 30, 2018

High wage countries like the United States tend to use less labor-intensive production methods than low wage countries like Mexico.
a. True
b. False
Indicate whether the statement is true or false

Question 2

How does opportunity cost to education contribute to low school enrollments in developing countries?

Swizqar · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

True

Answer to Question 2

In developing countries, children are often important members of the labor force. If children attend school, they cannot be of help in economic activities like agriculture, which rural households in depend on. This high opportunity cost to education, prevents children from entering school to gain formal education.