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Chapter 2: Problem 10

A representative of the American clothing industry recently made the following statement: "Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing." a. Which parts of this quote are positive statements? Which parts are normative statements? b. Is the policy that is being advocated consistent with the preceding statements about the wages and productivities of American and Asian workers? c. Would such a policy make some Americans better off without making any other Americans worse off? That is, would this policy be efficient from the viewpoint of all Americans? d. Would low-wage Asian workers benefit from or be hurt by such a policy?

Short Answer

Expert verified
Answer: The positive statements in the quote are: 1. "Workers in Asia often work in sweatshop conditions earning only pennies an hour." 2. "American workers are more productive and as a result earn higher wages." The normative statement in the quote is: 1. "In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing."

Step by step solution

01

Understand Positive and Normative Statements

Positive statements are statements that describe the objective facts or an existing scenario and can be proven true or false. Normative statements, on the other hand, express value judgments about what is morally right or wrong, good or bad and they cannot be proven true or false.
02

Identify Positive Statements in the Quote

In the given quote, the following parts are positive statements: 1. "Workers in Asia often work in sweatshop conditions earning only pennies an hour." 2. "American workers are more productive and as a result earn higher wages."
03

Identify Normative Statements in the Quote

In the given quote, the following part is a normative statement: 1. "In order to preserve the dignity of the American workplace, the government should enact legislation banning imports of low-wage Asian clothing." #b. Consistency with Wages and Productivities of American and Asian workers#
04

Analyze the Policy Advocated in the Statement

The policy advocated in the statement is banning imports of low-wage Asian clothing in order to preserve the dignity of the American workplace. We are to examine whether this policy is consistent with the preceding statements about the wages and productivities of American and Asian workers.
05

Evaluate the Consistency

The statement mentions American workers being more productive and earning higher wages as compared to Asian workers who earn low wages working in sweatshop conditions. Banning imports of low-wage Asian clothing could lead American businesses to produce the clothing domestically, which could potentially benefit American workers. So, the policy being advocated is consistent with the wage and productivity information provided in the statement. #c. Efficiency from the Viewpoint of All Americans#
06

Define Efficiency

Efficiency refers to a situation where resources are allocated in such a way that no one can be made better off without making someone else worse off.
07

Evaluate the Policy's Efficiency for All Americans

The policy of banning low-wage Asian clothing imports could potentially benefit American workers and the domestic clothing industry, as it might lead to increased demand for their products and possibly higher wages. However, it could also lead to higher prices for consumers due to higher production costs in the United States. This would make some Americans worse off, as they would have to spend more on clothing. Therefore, the policy would not be efficient from the viewpoint of all Americans. #d. Impact on Low-wage Asian Workers#
08

Analyze the Potential Impact of the Policy on Low-wage Asian Workers

If the policy banning low-wage Asian clothing imports is enacted, the demand for clothing produced by low-wage Asian workers could decrease.
09

Evaluate the Effect on Low-wage Asian Workers

A decrease in demand for clothing produced by low-wage Asian workers may lead to job losses and reduced income opportunities for these workers, making them worse off. This could potentially exacerbate poverty and negatively affect living conditions in the affected countries. Therefore, low-wage Asian workers would likely be hurt by the policy.

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