\"A representative of the American clothing industry recently made the following

Question

"A representative of the American clothing industry recently made the following statement:
a. Workers in Asia often work in sweatshop conditions earning only pennies an hour.
b. American workers are more productive
c. as a result earn higher wages.
d. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing."

1. which parts of quotation are positive economic statements?

2. which parts of quotation are normative economic statements?

3.would the policy being advocated achieve the stated goal? explain

4.would the proposed policy make any Americans better off? If so, who, specifically?

5.would the proposed policy make any Americans worse off? If so, who, specifically?

6.would low-wage Asian workers benefit from or be hurt by such a policy? Explain

Explanation / Answer

1. b. American workers are more productive. 2. c. as a result earn higher wages. 3. Yes, there will be support to home industry and American workers. 4. Yes, particularly low wage American workers. 5. Yes, American consumers will suffer as they will not get clothes at competitive prices. 6. Low wage Asian workers will be hurt as asian countries' export of such clothing will decline and some workers may even lose jobs or their wages will fall.

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