Question: Table: Labor Requirements Assembly Operations Component Production Office Services R&D Unskilled labor U.S.: 4 U.S.: 3 U.S.: 2 U.S.: 1 India: 10 India: 8 India:

Table: Labor Requirements

Assembly Operations Component Production Office Services R&D
Unskilled labor U.S.: 4 U.S.: 3 U.S.: 2 U.S.: 1
India: 10 India: 8 India: 6 India: 4
Skilled labor U.S.: 2 U.S.: 2 U.S.: 2 U.S.: 2
India: 10 India: 10 India: 10 India: 10

The table gives U.S. and Indian labor requirements (hours per unit of output) needed in each of four activities to produce the final product. Suppose that wages of unskilled and skilled workers are $10 and $20 in the United States and $1 and $5 in India, respectively. What is the relative wage of unskilled labor in the United States?

$4/$1

$5/$1

$1/$2

$2/$1

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