A Worker in Equador Can Earn $3 Per Day Making

Multiple Choice

A worker in Equador can earn $3 per day making cotton cloth on a hand loom.A worker in the United States can earn $70 per day making cotton cloth with a mechanical loom.What accounts for the difference in wages?

A) U.S. textile workers belong to a union.
B) There is little demand for cotton cloth in Equador and great demand in the U.S.
C) Labor is more productive making cotton cloth with a mechanical loom than with a hand loom.
D) Equador has a low-wage policy to make its textile industry more competitive in world markets.