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.”

a. Which parts of this quote are positive statements? Which parts are normative statements?

b. Is the policy that is being advocated consistent with the preceding statements about the wages and productivities of American and Asian workers?

c. Would such a policy make some Americans better off without making any other Americans worse off? That is, would this policy be efficient from the viewpoint of all Americans?

d. Would low-wage Asian workers benefit from or be hurt by such a policy?