A representative of the American clothing industry recently made the following statement: Workers in Asia often work

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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.” Answer the following:
a. Which parts of this quote are positive statements? Which parts are normative statements?
b. Would such a policy make some Americans better off without making any other Americans worse off? Explain who, and why.
c. Would low-wage Asian workers benefit from or be hurt by such a policy, and why?

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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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