Which of the following statement is not true about LDCs ?
Correct answer: C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
- A. Most LDCs have less than 1/10 the per capita GNP of the U.S
- B. A greater share of GNP would have to be devoted to education to attain the same primary enrollment rates as in the U.S
- C. Setting up western labor standard and minimum wages in labor-abundant LDCs is sensible
- D. Most LDCs have a greater shortage of qualified teachers than the U.S does
Explanation
In labor-abundant LDCs, imposing Western minimum wages and labor standards is generally not considered sensible because it can reduce employment and obstruct the use of abundant low-cost labor. The other statements describe common LDC characteristics.
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