Question

Adam Smith claims that employers will typically have a major advantage over workers when negotiating the terms of labor contracts. What is his main argument for this claim? Question 12 options:

A. Workers will typically be less educated than their employers and so will be in a worse position to convincingly state their demands

B. Employers will typically think more about their profit margins, while workers will typically be focused on contributing to their teams

C. Employers will typically have a better understanding of their industries than workers, and this will help them to mislead workers

D. Workers will typically need to work immediately in order to survive, while employers will often be able to wait for better terms

Under what circumstances does Smith think that workers will be able to improve their wages and working conditions?

Question 13 options:

A. Wages and working conditions will typically improve in cases where consumers focus on buying from local producers rather than foreign ones

B. Wages and working conditions will typically improve when laws are passed to require employers to conform to minimum wage standards

C. Wages and working conditions will typically improve under circumstances of rapid economic growth due to increased competition for labor

D. Wages and working conditions will typically improve if workers find a way to convince their employers to care personally for their well-being