Asked by Mackenzie Vatter on Jul 03, 2024

verifed

Verified

The reason U.S.workers were better paid than foreign workers during the 1950s and 1960s is

A) U.S.workers were better trained and educated.
B) U.S.workers worked harder.
C) we had more capital (plant and equipment) per worker.
D) the U.S.dollar was the world's strongest currency.

Capital

All means of production (mainly plant and equipment) created by people.

Better Paid

Describes a position or job that offers a higher salary compared to others, often reflecting skill level, experience, or demand.

Foreign Workers

Employees from other countries working in a nation different from their homeland, often to fill labor shortages.

  • Appreciate the historical and current perspectives on trade policies and their economic consequences.
verifed

Verified Answer

NL
Nicole LofstedtJul 08, 2024
Final Answer :
C
Explanation :
The U.S. had more capital (plant and equipment) per worker during the 1950s and 1960s, which allowed for higher productivity and wages. This was known as the "capital deepening" effect, which means that as a country adds more capital per worker, the productivity of each worker increases, leading to higher wages. U.S. workers were not necessarily better trained or educated than foreign workers, and it cannot be assumed that they worked harder. While the U.S. dollar was strong during this time period, it was not a direct reason for higher wages.